Vishay Intertechnology, Inc. (VSH Quick QuoteVSH - Free Report) reported first-quarter 2022 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate by 22.4%. The bottom line surged 54% year over year and 15% sequentially.

Revenues of $853.8 million increased 11.7% year over year and 1.3% from the previous quarter’s level. Further, the figure surpassed the Zacks Consensus Estimate by 1.2%.

The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove year-over-year revenue growth in the reported quarter.

Vishay’s book-to-bill ratio was 1.14 at the end of the first quarter.

Product Segments in Detail

Resistors: The segment generated revenues of $207 million (24% of total revenues), up 10.9% year over year. The book-to-bill ratio for the product line was 1.24 in the reported quarter.

Inductors: The product line generated revenues of $82.8 million (10% of total revenues), which decreased 0.8% on a year-over-year basis. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.

MOSFETs: The product line generated revenues of $172.7 million (20% of total revenues), improving 12.7% year over year. The book-to-bill ratio for the product line was 1.28 at the end of the reported quarter.

Capacitors: The product line generated revenues of $128 million (15% of total revenues), up 20.3% year over year. The book-to-bill ratio for the product line was 1.02 in the reported quarter.

Diodes: The segment generated revenues of $182.3 million (21% of total revenues), up 16% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 1.16 in the quarter under review.

Optoelectronics: The product line generated revenues of $81 million (10% of the top line) in the reported quarter. The figure was up 4.2% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.78 for the period.

End-Market Details

Industrial: The industrial market generated $337.4 million (40% of total revenues) in the reported quarter, up 25% year over year.

Automotive: The automotive market generated $259.5 million (30% of total revenues) with a marginal increment of 1% from the prior-year period’s level.

Telecommunications: The telecommunications market generated $31 million (4% of total revenues), increasing 25% from the same quarter’s level last year.

Computing: The computing market generated $67.9 million (8% of total revenues), up 13% year over year.

Consumer Products: The consumer products market generated $38.7 million (4% of total revenues), decreasing 5% from the year-ago period’s level.

Power Supplies: The power supplies market generated $40.3 million (5% of total revenues), up 14% year over year.

Military & Aerospace: The military & aerospace market generated $46.5 million (5% of total revenues) and rose 12% from the same quarter last year.

Medical: The medical market generated $32.5 million (4% of total revenues), declining 8% on a year-over-year basis.

Regional Details

Vishay generated $344 million revenues from Asia (40% of total revenues), which increased 6.7% year over year. Revenues generated from Europe increased 8.1% from the year-ago quarter’s level to $289.98 million (34% of total revenues). VSH generated $219.8 million (26% of total revenues) from Americas, up 26.4% year over year.

Operating Results

In first-quarter 2022 the gross margin was 30.3%, expanding 380 basis points (bps) on a year-over-year basis.

Selling, general and administrative (SG&A) expenses were $112.9 million, increasing 6.8% year over year. As a percentage of total revenues, SG&A expenses contracted 60 bps from the year-ago quarter’s level to 13.2%.

The operating margin expanded 440 bps on a year-over-year basis to 17.1%.

Balance Sheet & Cash Flow

As of Mar 31, 2022, cash and cash equivalents were $789.2 million, up from $774.1 million as of Dec 31, 2021. Short-term investments were $96.6 million, down from $146.7 million in the previous quarter. Inventories were $602.9 million, up from $536.5 million in the prior quarter.

Long-term debt was $456.5 million at the end of the first quarter of 2022 compared with $455.7 million at the end of the fourth quarter of 2021.

In the reported quarter, Vishay generated $33.6 million of cash from operations, down from $146.7 million in the previous quarter.

VSH’s free cash flow in the first quarter was ($2.3) million against $46.5 million in the prior quarter.

Vishay returned $24.4 million to its stockholders, of which $14.5 million was paid out as dividends while $9.9 million was stock repurchased.

Guidance

For second-quarter 2022, Vishay expects total revenues of $830-$870 million. The Zacks Consensus Estimate for the same is pegged at $879.8 million.

VSH anticipates a second-quarter gross margin of 28.1% (+/-50 bps).

Zacks Rank & Other Stocks to Consider

Vishay currently has a Zacks Rank #2 (Buy). Investors interested in the broader technology sector can consider stocks like Jabil (JBL Quick QuoteJBL - Free Report) , Analog Devices (ADI Quick QuoteADI - Free Report) , and Broadcom (AVGO Quick QuoteAVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.

Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.

Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.