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Vishay Intertechnology, Inc. (VSH - Free Report) reported second-quarter 2022 adjusted earnings of 82 cents per share, which surpassed the Zacks Consensus Estimate by 26.2% and rose 34.4% year over year.
Revenues of $863.5 million increased 5.4% year over year. The figure surpassed the Zacks Consensus Estimate of $856.9 million.
The strong performance of resistor, inductor, diode, capacitor and opto product lines drove year-over-year revenue growth in the reported quarter.
However, the extended impacts of the pandemic-induced shutdown of the company’s facilities in China in the second quarter remained concerning.
Vishay’s book-to-bill ratio was 1.07 at the end of the second quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $230 million (25% of the total revenues), up 16% year over year. The strong momentum of resistors across automotive, industrial, military and medical markets was a positive. The book-to-bill ratio for the product line was 1.05 in the reported quarter.
Inductors: The product line generated revenues of $90 million (10% of the total revenues), which increased 7% on a year-over-year basis. This was primarily attributed to the company’s well-performing magnetics, which continued to drive its specialty business. The book-to-bill ratio for the product line was 0.97 at the end of the reported quarter.
MOSFET: The product line generated revenues of $158 million (18% of the total revenues), decreasing 4% year over year. This was due to the pandemic-induced plant and warehouse shutdowns in Shanghai. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.
Capacitors: The product line generated revenues of $132 million (15% of the total revenues), up 7% year over year. The book-to-bill ratio for the product line was 1.17 in the reported quarter. Growing opportunities for capacitors in the areas of power transmission and electro cars remain tailwinds.
Diodes: The segment generated revenues of $192 million (22% of the total revenues), up 14% from the year-ago quarter. Vishay’s strong momentum across the automotive and industrial markets with diodes remained a positive. The book-to-bill ratio for the product line was 1.10 in the quarter under review.
Optoelectronics: The product line generated revenues of $78 million (10% of the total revenues) in the reported quarter. The figure was up 9% from the year-ago quarter, owing to a strong demand environment. The book-to-bill ratio for the product line was 0.86 for the period.
Operating Details
In second-quarter 2022, the gross margin was 30.3%, expanding 230 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $110.4 million, increasing 6.3% year over year. As a percentage of the total revenues, the figure expanded 10 bps from the year-ago quarter to 12.8%.
The operating margin expanded 220 bps on a year-over-year basis to 17.5%.
Balance Sheet & Cash Flows
As of Jul 2, 2022, cash and cash equivalents were $765.6 million, down from $789.2 million as of Mar 31, 2022. Short-term investments were $81.1 million, down from $96.6 million in the previous quarter. Inventories were $633.8 million, up from $602.9 million in the prior quarter.
Long-term debt was $463.3 million at the end of the second quarter compared with $456.5 million at the end of the first quarter.
In the reported quarter, Vishay generated $74.7 million of cash from operations, up from $33.6 million in the previous quarter.
The company’s free cash flow in the second quarter was $15.2 million.
Vishay returned $40.6 million to stockholders, of which $14.3 million was paid out as dividends and $26.3 million was for stock repurchases.
Guidance
For third-quarter 2022, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $862.2 million.
The company anticipates a third-quarter gross margin of 29% (+/-50 bps).
Image: Bigstock
Vishay (VSH) Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) reported second-quarter 2022 adjusted earnings of 82 cents per share, which surpassed the Zacks Consensus Estimate by 26.2% and rose 34.4% year over year.
Revenues of $863.5 million increased 5.4% year over year. The figure surpassed the Zacks Consensus Estimate of $856.9 million.
The strong performance of resistor, inductor, diode, capacitor and opto product lines drove year-over-year revenue growth in the reported quarter.
However, the extended impacts of the pandemic-induced shutdown of the company’s facilities in China in the second quarter remained concerning.
Vishay’s book-to-bill ratio was 1.07 at the end of the second quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Vishay Intertechnology, Inc. price-consensus-eps-surprise-chart | Vishay Intertechnology, Inc. Quote
Product Segments in Detail
Resistors: The segment generated revenues of $230 million (25% of the total revenues), up 16% year over year. The strong momentum of resistors across automotive, industrial, military and medical markets was a positive. The book-to-bill ratio for the product line was 1.05 in the reported quarter.
Inductors: The product line generated revenues of $90 million (10% of the total revenues), which increased 7% on a year-over-year basis. This was primarily attributed to the company’s well-performing magnetics, which continued to drive its specialty business. The book-to-bill ratio for the product line was 0.97 at the end of the reported quarter.
MOSFET: The product line generated revenues of $158 million (18% of the total revenues), decreasing 4% year over year. This was due to the pandemic-induced plant and warehouse shutdowns in Shanghai. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.
Capacitors: The product line generated revenues of $132 million (15% of the total revenues), up 7% year over year. The book-to-bill ratio for the product line was 1.17 in the reported quarter. Growing opportunities for capacitors in the areas of power transmission and electro cars remain tailwinds.
Diodes: The segment generated revenues of $192 million (22% of the total revenues), up 14% from the year-ago quarter. Vishay’s strong momentum across the automotive and industrial markets with diodes remained a positive. The book-to-bill ratio for the product line was 1.10 in the quarter under review.
Optoelectronics: The product line generated revenues of $78 million (10% of the total revenues) in the reported quarter. The figure was up 9% from the year-ago quarter, owing to a strong demand environment. The book-to-bill ratio for the product line was 0.86 for the period.
Operating Details
In second-quarter 2022, the gross margin was 30.3%, expanding 230 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $110.4 million, increasing 6.3% year over year. As a percentage of the total revenues, the figure expanded 10 bps from the year-ago quarter to 12.8%.
The operating margin expanded 220 bps on a year-over-year basis to 17.5%.
Balance Sheet & Cash Flows
As of Jul 2, 2022, cash and cash equivalents were $765.6 million, down from $789.2 million as of Mar 31, 2022. Short-term investments were $81.1 million, down from $96.6 million in the previous quarter. Inventories were $633.8 million, up from $602.9 million in the prior quarter.
Long-term debt was $463.3 million at the end of the second quarter compared with $456.5 million at the end of the first quarter.
In the reported quarter, Vishay generated $74.7 million of cash from operations, up from $33.6 million in the previous quarter.
The company’s free cash flow in the second quarter was $15.2 million.
Vishay returned $40.6 million to stockholders, of which $14.3 million was paid out as dividends and $26.3 million was for stock repurchases.
Guidance
For third-quarter 2022, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $862.2 million.
The company anticipates a third-quarter gross margin of 29% (+/-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 like MACOM Technology Solutions (MTSI - Free Report) , Keysight Technologies (KEYS - Free Report) and Asure Software (ASUR - 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.
MACOM has lost 26% in the year-to-date period. The long-term earnings growth rate for MTSI is currently projected at 16.2%.
Keysight Technologies has lost 20.9% in the year-to-date period. KEYS’ long-term earnings growth rate is currently projected at 9.1%.
Asure Software has lost 29.6% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 14%.