Yahoo Finance Vishay (VSH) Up 0.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Vishay Intertechnology (VSH). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vishay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vishay Q1 Earnings Beat Estimates, Revenues Down Y/Y
Vishay Intertechnology delivered first-quarter 2024 earnings of 22 cents per share, surpassing the Zacks Consensus Estimate by 10%. The figure fell 72% year over year.
Revenues of $746.3 million beat the Zacks Consensus Estimate of $733 million. However, it declined 14.3% year over year.
Weakening momentum across industrial and automotive end markets was concerning.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major negative.
Vishay’s book-to-bill ratio was 0.82 at the end of the first quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $188.2 million (25.2% of the total revenues), down 15.6% year over year. The figure beat the Zacks Consensus Estimate of $182 million. The book-to-bill was 0.79.
Inductors: The product line generated revenues of $88.7 million (11.9% of the total revenues), which increased 10.5% on a year-over-year basis. The figure beat the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.96.
MOSFET: The product line generated revenues of $153.2 million (20.5% of the total revenues), decreasing 22.7% year over year. The figure missed the Zacks Consensus Estimate of $168 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $117.9 million (15.8% of the total revenues), down 11.6% year over year. The figure surpassed the Zacks Consensus Estimate of $109 million. The book-to-bill was 1.03.
Diodes: The segment generated revenues of $149.1 million (20% of the total revenues), down 15.1% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $143 million. The book-to-bill was 0.58.
Optoelectronics: The product line generated revenues of $49.2 million (6.6% of the total revenues) in the reported quarter. The figure beat the Zacks Consensus Estimate of $48.8 million. The figure was also down 18.5% from the year-ago quarter. The book-to-bill was 0.89.
Operating Details
In first-quarter 2024, the gross margin was 22.8%, contracting 920 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $127.7 million, increasing 6.3% year over year. As a percentage of total revenues, the figure expanded 330 bps from the year-ago quarter to 17.1%.
The operating margin contracted to 5.7% from 18.2% in the year-ago quarter.
Balance Sheet & Cash Flows
As of Mar 30, 2024, cash and cash equivalents were $796.5 million, down from $972.7 million as of Dec 31, 2023. Short-term investments were $37.4 million, up from $35.8 million at the end of the prior quarter.
The long-term debt was $819.4 million at the end of first-quarter 2024 compared with $818.2 million at the end of fourth-quarter 2023.
The company generated $80.2 million in cash from operations in the reported quarter, up from $6.3 million in the previous quarter.
In the fourth quarter, capital expenditure was $53.1 million. Also, the free cash flow was $27.9 million.
Guidance
For second-quarter 2024, Vishay expects total revenues of $750 million (+/- $20 million).
VSH anticipates a gross margin of 21.7% (+/-50 bps).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -32.1% due to these changes.
VGM Scores
At this time, Vishay has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Vishay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Vishay is part of the Zacks Semiconductor - Discretes industry. Over the past month, Wolfspeed (WOLF), a stock from the same industry, has gained 12.4%. The company reported its results for the quarter ended March 2024 more than a month ago.
Wolfspeed reported revenues of $200.7 million in the last reported quarter, representing a year-over-year change of -12.2%. EPS of -$0.62 for the same period compares with -$0.13 a year ago.
Wolfspeed is expected to post a loss of $0.74 per share for the current quarter, representing a year-over-year change of -76.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Wolfspeed has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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