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Visteon Announces Share Repurchase Program

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Price movement

Visteon Corporation (VC) has a market cap of $3.0 billion and rose 5.9% to close at $86.53 per share on January 10, 2017. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 6.9%, 2.8%, and 7.7%, respectively, on the same day.

VC is now trading 5.4% above its 20-day moving average, 10.8% above its 50-day moving average, and 17.5% above its 200-day moving average.

Related ETF and peers

The Schwab US Mid-Cap ETF (SCHM) invests 0.10% of its holdings in Visteon. The YTD price movement of SCHM was 1.4% on January 10.

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

  • Delphi Automotive (DLPH): $19.2 billion
  • Lear (LEA): $10.0 billion
  • Harman International Industries (HAR): $7.7 billion

Latest news on VC

Visteon has announced a new share repurchase program of up to $400 million of its common stock through March 2018. This share repurchase program will be funded through cash on hand.

Visteon’s performance in 3Q16

Visteon reported 3Q16 sales of $770.0 million—a fall of 4.7% from its sales of $808.0 million in 3Q15. The company’s gross profit margin expanded 60 basis points in 3Q16 as compared to 3Q15.

Its net income and EPS (earnings per share) rose to $28.0 million and $0.81, respectively, in 3Q16, as compared to $5.0 million and $0.12, respectively, in 3Q15. It reported adjusted EPS of $1.10 in 3Q16—a rise of 96.4% over to 3Q15.

VC’s cash and equivalents and trade receivables fell 68.8% and 5.9%, respectively, between 3Q16 and 4Q15.

Projections

Visteon has made the following projections for fiscal 2016:

  • sales for the Electronics Product Group to reach $3.1 billion
  • adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for the Electronics Product Group to be in the range of $325 million– $335 million
  • adjusted free cash flow for the Electronics Product Group to be in the range of $125 million–$150 million.

In the next and final part of this series, we’ll discuss International Paper (IP).

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