Vishay Intertechnology, Inc. (VSH - Free Report) reported third-quarter 2022 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate by 9.4%. The bottom line surged 48% year over year and 13% sequentially.
Revenues of $924.8 million missed the Zacks Consensus Estimate of $925.2 million. The top line increased 13.7% year over year and 7.1% from the previous quarter’s level.
The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove revenues from the year-ago quarter’s reported quarter.
Vishay’s book-to-bill ratio was 0.88 at the end of the third quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $207.4 million (22% of total revenues), up 14.5% year over year. The book-to-bill ratio for the product line was 1.08 in the reported quarter.
Inductors: The product line generated revenues of $83.5 million (9% of total revenues), which decreased 1.5% on a year-over-year basis. The book-to-bill ratio for the product line was 1.02 at the end of the reported quarter.
MOSFETs: The product line generated revenues of $225.2 million (24% of total revenues), improving 28.3% year over year. The book-to-bill ratio for the product line was 0.78 at the end of the reported quarter.
Capacitors: The product line generated revenues of $126.2 million (14% of total revenues), up 8.7% year over year. The book-to-bill ratio for the product line was 0.95 in the reported quarter.
Diodes: The segment generated revenues of $209 million (23% of total revenues), up 12.8% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.79 in the quarter under review.
Optoelectronics: The product line generated revenues of $73.4 million (8% of the top line) in the reported quarter. The figure was up 3.8% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.57 for the period.
End-Market Details
Industrial: The industrial market generated $362.4 million (39% of total revenues) in the reported quarter, up 8% year over year.
Automotive: The automotive market generated $286.3 million (30% of total revenues) with an increase of 31% from the prior-year period’s level.
Telecommunications: The telecommunications market generated $32.3 million (3% of total revenues), increasing 31% from the same quarter’s level last year.
Computing: The computing market generated $52.3 million (7% of total revenues), down 11% year over year.
Consumer Products: The consumer products market generated $50.2 million (5% of total revenues), increasing 15% from the year-ago period’s level.
Power Supplies: The power supplies market generated $50.8 million (5% of total revenues), up 21% year over year.
Military & Aerospace: The military & aerospace market generated $56.9 million (6% of total revenues) and rose 41% from the same-quarter level last year.
Medical: The medical market generated $33.7 million (4% of total revenues), increasing 18% on a year-over-year basis.
Regional Details
Vishay generated $352.2 million revenues from Asia (38% of total revenues), which declined 3.6% year over year. Revenues generated from Europe increased 12.6% from the year-ago quarter’s level to $296.8 million (32% of total revenues). VSH generated $275.9 million (30% of total revenues) from Americas, up 49.2% year over year.
Operating Results
In third-quarter 2022, the gross margin was 31.3%, expanding 360 basis points (bps) on a year-over-year basis.
Selling, general and administrative (SG&A) expenses were $106.4 million, decreasing 3.6% year over year. As a percentage of total revenues, SG&A expenses contracted 210 bps from the year-ago quarter’s level to 11.5%.
The operating margin expanded 460 bps on a year-over-year basis to 19.8%.
Balance Sheet
As of Oct 1, 2022, cash and cash equivalents were $734.99 million, down from $765.6 million as of Jul 2, 2022.
Long-term debt was $458.1 million at the end of the third quarter of 2022 compared with $463.3 million at the end of the second quarter of 2022.
Vishay returned $32.8 million to its stockholders, of which $14.3 million was paid out as dividends, while $18.5 million was stock repurchased.
Guidance
For fourth-quarter 2022, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $893.9 million.
VSH anticipates a fourth-quarter gross margin of 30% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks likeUS Foods (USFD - Free Report) , The Trade Desk (TTD - Free Report) and Tencent Music Entertainment Group (TME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure. USFD has lost 15% in the year-to-date period. Its long-term earnings growth rate is currently projected at 20%.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure. TTD has lost 42% in the year-to-date period. TTD’s long-term earnings growth rate is currently projected at 24%.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting a 22.2% increase from the prior-year quarter’s reported figure. TME has lost 45.2% in the year-to-date period. TME’s long-term earnings growth rate is currently projected at 17.9%.
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Free: See Our Top Stock And 4 Runners Up
Vishay Intertechnology, Inc. (VSH - Free Report) reported third-quarter 2022 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate by 9.4%. The bottom line surged 48% year over year and 13% sequentially.
Revenues of $924.8 million missed the Zacks Consensus Estimate of $925.2 million. The top line increased 13.7% year over year and 7.1% from the previous quarter’s level.
The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove revenues from the year-ago quarter’s reported quarter.
Vishay’s book-to-bill ratio was 0.88 at the end of the third quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $207.4 million (22% of total revenues), up 14.5% year over year. The book-to-bill ratio for the product line was 1.08 in the reported quarter.
Inductors: The product line generated revenues of $83.5 million (9% of total revenues), which decreased 1.5% on a year-over-year basis. The book-to-bill ratio for the product line was 1.02 at the end of the reported quarter.
MOSFETs: The product line generated revenues of $225.2 million (24% of total revenues), improving 28.3% year over year. The book-to-bill ratio for the product line was 0.78 at the end of the reported quarter.
Capacitors: The product line generated revenues of $126.2 million (14% of total revenues), up 8.7% year over year. The book-to-bill ratio for the product line was 0.95 in the reported quarter.
Diodes: The segment generated revenues of $209 million (23% of total revenues), up 12.8% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.79 in the quarter under review.
Optoelectronics: The product line generated revenues of $73.4 million (8% of the top line) in the reported quarter. The figure was up 3.8% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.57 for the period.
End-Market Details
Industrial: The industrial market generated $362.4 million (39% of total revenues) in the reported quarter, up 8% year over year.
Automotive: The automotive market generated $286.3 million (30% of total revenues) with an increase of 31% from the prior-year period’s level.
Telecommunications: The telecommunications market generated $32.3 million (3% of total revenues), increasing 31% from the same quarter’s level last year.
Computing: The computing market generated $52.3 million (7% of total revenues), down 11% year over year.
Consumer Products: The consumer products market generated $50.2 million (5% of total revenues), increasing 15% from the year-ago period’s level.
Power Supplies: The power supplies market generated $50.8 million (5% of total revenues), up 21% year over year.
Military & Aerospace: The military & aerospace market generated $56.9 million (6% of total revenues) and rose 41% from the same-quarter level last year.
Medical: The medical market generated $33.7 million (4% of total revenues), increasing 18% on a year-over-year basis.
Regional Details
Vishay generated $352.2 million revenues from Asia (38% of total revenues), which declined 3.6% year over year. Revenues generated from Europe increased 12.6% from the year-ago quarter’s level to $296.8 million (32% of total revenues). VSH generated $275.9 million (30% of total revenues) from Americas, up 49.2% year over year.
Operating Results
In third-quarter 2022, the gross margin was 31.3%, expanding 360 basis points (bps) on a year-over-year basis.
Selling, general and administrative (SG&A) expenses were $106.4 million, decreasing 3.6% year over year. As a percentage of total revenues, SG&A expenses contracted 210 bps from the year-ago quarter’s level to 11.5%.
The operating margin expanded 460 bps on a year-over-year basis to 19.8%.
Balance Sheet
As of Oct 1, 2022, cash and cash equivalents were $734.99 million, down from $765.6 million as of Jul 2, 2022.
Long-term debt was $458.1 million at the end of the third quarter of 2022 compared with $463.3 million at the end of the second quarter of 2022.
Vishay returned $32.8 million to its stockholders, of which $14.3 million was paid out as dividends, while $18.5 million was stock repurchased.
Guidance
For fourth-quarter 2022, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $893.9 million.
VSH anticipates a fourth-quarter gross margin of 30% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks likeUS Foods (USFD - Free Report) , The Trade Desk (TTD - Free Report) and Tencent Music Entertainment Group (TME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure. USFD has lost 15% in the year-to-date period. Its long-term earnings growth rate is currently projected at 20%.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure. TTD has lost 42% in the year-to-date period. TTD’s long-term earnings growth rate is currently projected at 24%.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting a 22.2% increase from the prior-year quarter’s reported figure. TME has lost 45.2% in the year-to-date period. TME’s long-term earnings growth rate is currently projected at 17.9%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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