Visteon (NASDAQ: VC) reported Q4 EPS of $1.52, $0.49 better than the analyst estimate of $1.03. Revenue for the quarter came in at $731 million versus the consensus estimate of $717.58 million.

Fourth Quarter in Review

Sales totaled $731 million and $797 million during the fourth quarters of 2018 and 2017, respectively. The year-over-year decrease was primarily related to unfavorable vehicle production volumes, customer pricing net of design changes, and unfavorable currency impacts. On a regional basis, in the fourth quarter of 2018 Europe accounted for 29 percent of sales; China Domestic 16 percent; China Export 9 percent; the Americas 24 percent; and Other Asia-Pacific 22 percent.

Gross margin for the fourth quarter of 2018 and 2017 was $96 million and $137 million, respectively. Adjusted EBITDA, a non-GAAP measure as defined below, was $74 million for the fourth quarter of 2018, compared with $102 million for the same quarter last year. Adjusted EBITDA margin was 10.1 percent for the fourth quarter of 2018, 270 basis points lower than the same period in the prior year.

For the fourth quarter of 2018, net income attributable to Visteon was $43 million or $1.49 per diluted share, compared with $25 million or $0.79 per diluted share for the same period in 2017. Adjusted net income, which excludes restructuring charges and discontinued operations, was $44 million or $1.52 per diluted share for the fourth quarter of 2018, compared with $52 million or $1.64 per diluted share for the same period in 2017.

"The market environment in 2018 was very challenging, as vehicle production softened in the second half of the year,” said President and CEO Sachin Lawande. "Despite these challenges, Visteon made significant progress in the transformation of its business. We launched the industry's first production cockpit domain controller with Daimler and secured significant new business wins in the fast-growing digital cluster and infotainment segments. By winning approximately $7 billion in new business for the second consecutive year -- and adding five new customers in the process -- we strengthened Visteon’s position toward achieving our long-term growth targets

GUIDANCE:

Visteon sees FY2019 revenue of $2.9-3 billion, versus the consensus of $2.9 billion.

• Adjusted EBITDA in the range of $280 million to $310 million
• Adjusted free cash flow in the range of $80 million to $100 million.

For earnings history and earnings-related data on Visteon (VC) click here.