It has been about a month since the last earnings report for Vishay Intertechnology (VSH Quick QuoteVSH - Free Report) . Shares have added about 14.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Vishay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Vishay's Q3 Earnings & Revenues Up Y/Y

Vishay Intertechnology 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.

VSH anticipates a fourth-quarter gross margin of 30% (+/-50 bps).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -8.24% due to these changes.

VGM Scores

At this time, Vishay has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Vishay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.