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Nomi Bergman Joins Visteon’s Board of Directors

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Price movement

Visteon (VC) rose 2.0% to close at $71.80 per share during the second week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.0%, 1.6%, and -37.3%, respectively, as of September 16. VC is trading 0.75% above its 20-day moving average, 2.8% above its 50-day moving average, and 9.4% below its 200-day moving average.

Related ETFs and peers

The Schwab US Mid-Cap ETF (SCHM) invests 0.10% of its holdings in Visteon. The ETF tracks a market-cap-weighted index of mid-cap stocks in the Dow Jones US Total Stock Market Index. The YTD price movement of SCHM was 7.8% on September 16.

The iShares Dow Jones US ETF (IYY) invests 0.01% of its holdings in Visteon. The ETF tracks a broad cap-weighted index of US companies covering 95% of the US market.

The market caps of Visteon’s competitors are as follows:

  • Delphi Automotive (DLPH): $19.0 billion
  • Lear (LEA): $8.6 billion
  • Harman International Industries (HAR): $5.7 billion

Visteon made key appointment

Nomi Bergman has been appointed to Visteon’s board of directors, effective October 1.

Performance of Visteon in 2Q16

Visteon reported 2Q16 sales of $773.0 million, a fall of 4.8% compared to sales of $812.0 million in 2Q15. The company’s gross profit margin rose by 15.7% in 2Q16 compared to the prior-year period.

The company’s net income and EPS (earnings per share) fell to $26.0 million and $0.76, respectively, in 2Q16 compared to $2.2 billion and $49.73, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS of $77.0 million and $1.22, respectively, in 2Q16, a rise of 28.3% and 221.1%, respectively, compared to 2Q15.

VC’s cash and equivalents and trade receivables fell by 69.0% and 3.8%, respectively, in 2Q16, compared to 4Q15. Its current ratio rose to 2.0x, and its debt-to-equity ratio fell to 2.1x in 2Q16 compared to a current ratio and a debt-to-equity ratio of 1.5x and 2.9x, respectively, in 4Q15. It reported adjusted free cash flow of $79.0 in 2Q16, a rise of 139.4% compared to 2Q15.

Projections

The company has made the following projections for fiscal 2016:

  • It expects sales for the Electronics Product Group in the range of $3.1 billion to $3.2 billion.
  • It expects adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for the Electronics Product Group in the range of $305 million to $335 million.
  • It expects adjusted free cash flow for the Electronics Product Group in the range of $110 million to $150 million.

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