Vishay Intertechnology, Inc. (VSH - Free Report) delivered second-quarter 2023 adjusted earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by 13.3%. The figure fell by 17.1% year over year.
Revenues of $892.11 million increased by 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $873.7 million.
The solid performance of MOSFETS drove year-over-year revenue growth in the reported quarter. Strength in resistor and capacitor product lines contributed well.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.69 at the end of the second quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $222.4 million (25% of the total revenues), up 4.3% year over year. The figure missed the Zacks Consensus Estimate of $224 million. The book-to-bill was 0.74.
Inductors: The product line generated revenues of $89.2 million (10% of the total revenues), which decreased 0.4% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.84.
MOSFET: The product line generated revenues of $207.4 million (23.2% of the total revenues), increasing 30.9% year over year. The figure beat the Zacks Consensus Estimate of $174 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $133.9 million (15% of the total revenues), up 1.2% year over year. The figure came below the Zacks Consensus Estimate of $137 million. The book-to-bill was 0.70.
Diodes: The segment generated revenues of $174.7 million (19.6% of the total revenues), down 9.1% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $189 million. The book-to-bill was 0.54.
Optoelectronics: The product line generated revenues of $64.4 million (7.2% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $69 million. The figure was down 17.3% from the year-ago quarter. The book-to-bill was 0.70.
Operating Details
In second-quarter 2023, the gross margin was 28.9%, contracting 140 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.9 million, increasing by 11.3% year over year. As a percentage of total revenues, the figure expanded 100 bps from the year-ago quarter to 13.8%.
The operating margin contracted 240 bps on a year-over-year basis to 15.1%.
Balance Sheet & Cash Flows
As of Jul 1, 2023, cash and cash equivalents were $1.1 billion, up from $847.5 million as of Apr 1, 2023.
Long-term debt was $639.7 million at the end of second-quarter 2023 compared with $566.8 million at the end of first-quarter 2023.
The company generated $107.2 million in cash from operations in the reported quarter, down from $129.9 million in the previous quarter.
In the second quarter, capital expenditures were $71.7 million. Also, free cash flow was $36.2 million.
Guidance
For third-quarter 2023, Vishay expects total revenues of $840-$880 million. The Zacks Consensus Estimate for the same is pegged at $856.1 million.
VSH anticipates a third-quarter gross margin of 27.7% (+/-50 bps).
Zacks Rank & Other Stocks to Consider
Vishay currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) and Salesforce (CRM - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter shares have gained 48.6% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
Arista Networks shares have gained 46.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%
Salesforce shares have gained 55.3% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 19.25%.
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Vishay Intertechnology, Inc. (VSH - Free Report) delivered second-quarter 2023 adjusted earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by 13.3%. The figure fell by 17.1% year over year.
Revenues of $892.11 million increased by 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $873.7 million.
The solid performance of MOSFETS drove year-over-year revenue growth in the reported quarter. Strength in resistor and capacitor product lines contributed well.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.69 at the end of the second quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $222.4 million (25% of the total revenues), up 4.3% year over year. The figure missed the Zacks Consensus Estimate of $224 million. The book-to-bill was 0.74.
Inductors: The product line generated revenues of $89.2 million (10% of the total revenues), which decreased 0.4% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.84.
MOSFET: The product line generated revenues of $207.4 million (23.2% of the total revenues), increasing 30.9% year over year. The figure beat the Zacks Consensus Estimate of $174 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $133.9 million (15% of the total revenues), up 1.2% year over year. The figure came below the Zacks Consensus Estimate of $137 million. The book-to-bill was 0.70.
Diodes: The segment generated revenues of $174.7 million (19.6% of the total revenues), down 9.1% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $189 million. The book-to-bill was 0.54.
Optoelectronics: The product line generated revenues of $64.4 million (7.2% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $69 million. The figure was down 17.3% from the year-ago quarter. The book-to-bill was 0.70.
Operating Details
In second-quarter 2023, the gross margin was 28.9%, contracting 140 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.9 million, increasing by 11.3% year over year. As a percentage of total revenues, the figure expanded 100 bps from the year-ago quarter to 13.8%.
The operating margin contracted 240 bps on a year-over-year basis to 15.1%.
Balance Sheet & Cash Flows
As of Jul 1, 2023, cash and cash equivalents were $1.1 billion, up from $847.5 million as of Apr 1, 2023.
Long-term debt was $639.7 million at the end of second-quarter 2023 compared with $566.8 million at the end of first-quarter 2023.
The company generated $107.2 million in cash from operations in the reported quarter, down from $129.9 million in the previous quarter.
In the second quarter, capital expenditures were $71.7 million. Also, free cash flow was $36.2 million.
Guidance
For third-quarter 2023, Vishay expects total revenues of $840-$880 million. The Zacks Consensus Estimate for the same is pegged at $856.1 million.
VSH anticipates a third-quarter gross margin of 27.7% (+/-50 bps).
Zacks Rank & Other Stocks to Consider
Vishay currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) and Salesforce (CRM - Free Report) . While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter shares have gained 48.6% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
Arista Networks shares have gained 46.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%
Salesforce shares have gained 55.3% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 19.25%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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