-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Visteon (VC) posted Q1 adjusted EPS of $1.65 vs. $2.40 (-31%), well short of the $1.84 consensus. The miss was due to weaker-than-expected margins, as net revenue rose 2% to $954M ($56M above consensus) and gross margin fell 300 bps to 11.8% (110 bps shy of consensus). Importantly, despite industry and customer vehicle production being down 3% and 4%, respectively, VC delivered growth-over-market of 3%, supported by the ramp-up of recent product launches and robust customer demand. VC maintained 2026 sales and adjusted EBITDA guidance, saying it expects margin improvement over the balance of the year, supported by customer recoveries and ongoing cost actions, with upcoming product launches expected to offset the softer industry production outlook. VC shares are currently trading 2% lower in pre-market trading, with the fact that it reiterated 2026 guidance despite the much weaker-than-expected Q1 likely reassuring investors. We note VC's outperformance relative to demand in its markets was a big positive.