Visteon Corporation (NASDAQ:VC): What We Can Expect From This Growth Stock
In September 2018, Visteon Corporation (NASDAQ:VC) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 18% next year relative to the past 5-year average growth rate of -22%. By 2020, we can expect Visteon’s bottom line to reach US$188m, a jump from the current trailing-twelve-month US$159m. Below is a brief commentary on the longer term outlook the market has for Visteon. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Visteon
What can we expect from Visteon in the longer term?
The longer term expectations from the 17 analysts of VC is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for VC, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of US$159m and the final forecast of US$324m by 2022, the annual rate of growth for VC’s earnings is 22%. EPS reaches $10.76 in the final year of forecast compared to the current $5.03 EPS today. With a current profit margin of 5.1%, this movement will result in a margin of 8.3% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Visteon, I’ve put together three relevant aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Visteon worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Visteon is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Visteon? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
