Vishay Intertechnology, Inc. (VSH - Free Report) delivered fourth-quarter 2023 adjusted earnings of 37 cents per share, surpassing the Zacks Consensus Estimate by 2.8%. The figure fell 27.5% year over year.
Revenues of $785.24 million decreased 8.2% year over year. The figure beat the Zacks Consensus Estimate of $778.75 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.75 at the end of the fourth quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $198 million (25.2% of the total revenues), down 3.5% year over year. The figure beat the Zacks Consensus Estimate of $183.02 million. The book-to-bill was 0.82.
Inductors: The product line generated revenues of $87.9 million (11.2% of the total revenues), which increased 16.9% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $71.26 million. The book-to-bill was 0.91.
MOSFET: The product line generated revenues of $168.2 million (21.4% of the total revenues), decreasing 18.3% year over year. The figure beat the Zacks Consensus Estimate of $203.01 million. The book-to-bill was 0.62.
Capacitors: The product line generated revenues of $114 million (14.5% of the total revenues), down 7.5% year over year. The figure beat the Zacks Consensus Estimate of $113.95 million. The book-to-bill was 0.95.
Diodes: The segment generated revenues of $163.3 million (20.8% of the total revenues), down 10.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $158.4 million. The book-to-bill was 0.61.
Optoelectronics: The product line generated revenues of $53.9 million (6.9% of the total revenues), down 15.8% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $55.4 million. The figure decreased 12.3% from the year-ago quarter. The book-to-bill was 0.59.
Operating Details
In fourth-quarter 2023, the gross margin was 25.6%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.8 million, increasing 7.9% year over year. As a percentage of total revenues, the figure expanded 230 bps from the year-ago quarter to 15.6%.
The operating margin contracted 590 bps on a year-over-year basis to 9.9%.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents were $972.7 million, down from $1.1 billion as of Sep 30, 2023. Short-term investments were $35.8 million, down from $78.9 million at the end of the prior quarter.
Long-term debt was $818.2 million at the end of fourth-quarter 2023 compared with $817.3 million at the end of third-quarter 2023.
The company generated $6.3 million in cash from operations in the reported quarter, down from $122.3 million in the previous quarter.
In the fourth quarter, capital expenditures were $145.3 million. Also, free cash outflow was $138.9 million.
Guidance
For first-quarter 2024, Vishay expects total revenues of $715-$755 million. The Zacks Consensus Estimate for the same is pegged at $755.04 million.
VSH anticipates a first-quarter gross margin of 24.0% (+/-50 bps).
The company anticipates first-quarter selling, general and administrative expenses in the range of $128-$132 million.
For 2024, Vishay expects a normalized effective tax rate of 31%.
The company anticipates 2024 selling, general and administrative expenses in the range of $523-$533 million at currency exchange rates.
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) , and Badger Meter (BMI - Free Report) . While BlackLine and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Badger Meter carries a Zacks Rank #2 (Buy), at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine shares have lost 3.5% in the year-to-date period. The long-term earnings growth rate for BL is currently projected at 50.56%.
Arista Networks shares have gained 13.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.15%.
Badger Meter shares have lost 7.3% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 12.27%.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Vishay Intertechnology, Inc. (VSH - Free Report) delivered fourth-quarter 2023 adjusted earnings of 37 cents per share, surpassing the Zacks Consensus Estimate by 2.8%. The figure fell 27.5% year over year.
Revenues of $785.24 million decreased 8.2% year over year. The figure beat the Zacks Consensus Estimate of $778.75 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.75 at the end of the fourth quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $198 million (25.2% of the total revenues), down 3.5% year over year. The figure beat the Zacks Consensus Estimate of $183.02 million. The book-to-bill was 0.82.
Inductors: The product line generated revenues of $87.9 million (11.2% of the total revenues), which increased 16.9% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $71.26 million. The book-to-bill was 0.91.
MOSFET: The product line generated revenues of $168.2 million (21.4% of the total revenues), decreasing 18.3% year over year. The figure beat the Zacks Consensus Estimate of $203.01 million. The book-to-bill was 0.62.
Capacitors: The product line generated revenues of $114 million (14.5% of the total revenues), down 7.5% year over year. The figure beat the Zacks Consensus Estimate of $113.95 million. The book-to-bill was 0.95.
Diodes: The segment generated revenues of $163.3 million (20.8% of the total revenues), down 10.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $158.4 million. The book-to-bill was 0.61.
Optoelectronics: The product line generated revenues of $53.9 million (6.9% of the total revenues), down 15.8% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $55.4 million. The figure decreased 12.3% from the year-ago quarter. The book-to-bill was 0.59.
Operating Details
In fourth-quarter 2023, the gross margin was 25.6%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.8 million, increasing 7.9% year over year. As a percentage of total revenues, the figure expanded 230 bps from the year-ago quarter to 15.6%.
The operating margin contracted 590 bps on a year-over-year basis to 9.9%.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents were $972.7 million, down from $1.1 billion as of Sep 30, 2023. Short-term investments were $35.8 million, down from $78.9 million at the end of the prior quarter.
Long-term debt was $818.2 million at the end of fourth-quarter 2023 compared with $817.3 million at the end of third-quarter 2023.
The company generated $6.3 million in cash from operations in the reported quarter, down from $122.3 million in the previous quarter.
In the fourth quarter, capital expenditures were $145.3 million. Also, free cash outflow was $138.9 million.
Guidance
For first-quarter 2024, Vishay expects total revenues of $715-$755 million. The Zacks Consensus Estimate for the same is pegged at $755.04 million.
VSH anticipates a first-quarter gross margin of 24.0% (+/-50 bps).
The company anticipates first-quarter selling, general and administrative expenses in the range of $128-$132 million.
For 2024, Vishay expects a normalized effective tax rate of 31%.
The company anticipates 2024 selling, general and administrative expenses in the range of $523-$533 million at currency exchange rates.
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) , and Badger Meter (BMI - Free Report) . While BlackLine and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Badger Meter carries a Zacks Rank #2 (Buy), at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine shares have lost 3.5% in the year-to-date period. The long-term earnings growth rate for BL is currently projected at 50.56%.
Arista Networks shares have gained 13.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.15%.
Badger Meter shares have lost 7.3% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 12.27%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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