We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vishay (VSH) Up 3.7% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Vishay Intertechnology (VSH - Free Report) . Shares have added about 3.7% 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 catalysts.
Vishay's Q4 Earnings & Revenues Up Y/Y
Vishay Intertechnology reported fourth-quarter 2022 adjusted earnings of 69 cents per share, which rose 11.3% year over year. However, the figure missed the Zacks Consensus Estimate by 11.5%.
Revenues of $855.3 million increased 1.4% year over year. The figure came below the Zacks Consensus Estimate of $881 million.
Top line growth was driven by a strong demand environment and an ongoing mega-electrification trend across the automotive and industrial end-markets.
Vishay’s book-to-bill ratio was 0.94 at the end of the third quarter.
Operating Details
In fourth-quarter 2022, the gross margin was 29.1%, expanding 180 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $113.8 million, increasing 5.1% year over year. As a percentage of the total revenues, the figure expanded 50 bps from the year-ago quarter to 13.3%.
The operating margin expanded 140 bps on a year-over-year basis to 15.8%.
Balance Sheet & Cash Flows
As of Dec 31, 2022, cash and cash equivalents were $610.8 million, down from $734.9 million as of Oct 1, 2022.
Long-term debt was $500.9 million at the end of the fourth quarter of 2022 compared with $458.1 million at the end of the third quarter of 2022.
The company generated $166.5 million in cash from operations in the reported quarter, down from $209.5 million in the previous quarter.
In the fourth quarter, capital expenditures were $153.1 million. Also, free cash flow was $14.1 million.
Vishay returned $42.4 million to its stockholders, of which $14.1 million was paid out as dividends and $28.3 million was stock repurchased.
Guidance
For first-quarter 2023, Vishay expects total revenues of $825-$865 million.
VSH anticipates a first-quarter gross margin of 28% (+/-50 bps).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -24.5% due to these changes.
VGM Scores
Currently, Vishay has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 these revisions indicates a downward shift. It's no surprise Vishay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Vishay (VSH) Up 3.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Vishay Intertechnology (VSH - Free Report) . Shares have added about 3.7% 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 catalysts.
Vishay's Q4 Earnings & Revenues Up Y/Y
Vishay Intertechnology reported fourth-quarter 2022 adjusted earnings of 69 cents per share, which rose 11.3% year over year. However, the figure missed the Zacks Consensus Estimate by 11.5%.
Revenues of $855.3 million increased 1.4% year over year. The figure came below the Zacks Consensus Estimate of $881 million.
Top line growth was driven by a strong demand environment and an ongoing mega-electrification trend across the automotive and industrial end-markets.
Vishay’s book-to-bill ratio was 0.94 at the end of the third quarter.
Operating Details
In fourth-quarter 2022, the gross margin was 29.1%, expanding 180 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $113.8 million, increasing 5.1% year over year. As a percentage of the total revenues, the figure expanded 50 bps from the year-ago quarter to 13.3%.
The operating margin expanded 140 bps on a year-over-year basis to 15.8%.
Balance Sheet & Cash Flows
As of Dec 31, 2022, cash and cash equivalents were $610.8 million, down from $734.9 million as of Oct 1, 2022.
Long-term debt was $500.9 million at the end of the fourth quarter of 2022 compared with $458.1 million at the end of the third quarter of 2022.
The company generated $166.5 million in cash from operations in the reported quarter, down from $209.5 million in the previous quarter.
In the fourth quarter, capital expenditures were $153.1 million. Also, free cash flow was $14.1 million.
Vishay returned $42.4 million to its stockholders, of which $14.1 million was paid out as dividends and $28.3 million was stock repurchased.
Guidance
For first-quarter 2023, Vishay expects total revenues of $825-$865 million.
VSH anticipates a first-quarter gross margin of 28% (+/-50 bps).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -24.5% due to these changes.
VGM Scores
Currently, Vishay has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 these revisions indicates a downward shift. It's no surprise Vishay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.