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Why Is Vishay (VSH) Down 5.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Vishay Intertechnology (VSH - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Vishay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Vishay's Q2 Earnings & Revenues Beat
Vishay Intertechnology delivered second-quarter 2023 adjusted earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by 13.3%. The figure fell by 17.1% year over year.
Revenues of $892.11 million increased by 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $873.7 million.
The solid performance of MOSFETS drove year-over-year revenue growth in the reported quarter. Strength in resistor and capacitor product lines contributed well.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.69 at the end of the second quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $222.4 million (25% of the total revenues), up 4.3% year over year. The figure missed the Zacks Consensus Estimate of $224 million. The book-to-bill was 0.74.
Inductors: The product line generated revenues of $89.2 million (10% of the total revenues), which decreased 0.4% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.84.
MOSFET: The product line generated revenues of $207.4 million (23.2% of the total revenues), increasing 30.9% year over year. The figure beat the Zacks Consensus Estimate of $174 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $133.9 million (15% of the total revenues), up 1.2% year over year. The figure came below the Zacks Consensus Estimate of $137 million. The book-to-bill was 0.70.
Diodes: The segment generated revenues of $174.7 million (19.6% of the total revenues), down 9.1% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $189 million. The book-to-bill was 0.54.
Optoelectronics: The product line generated revenues of $64.4 million (7.2% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $69 million. The figure was down 17.3% from the year-ago quarter. The book-to-bill was 0.70.
Operating Details
In second-quarter 2023, the gross margin was 28.9%, contracting 140 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.9 million, increasing by 11.3% year over year. As a percentage of total revenues, the figure expanded 100 bps from the year-ago quarter to 13.8%.
The operating margin contracted 240 bps on a year-over-year basis to 15.1%.
Balance Sheet & Cash Flows
As of Jul 1, 2023, cash and cash equivalents were $1.1 billion, up from $847.5 million as of Apr 1, 2023.
Long-term debt was $639.7 million at the end of second-quarter 2023 compared with $566.8 million at the end of first-quarter 2023.
The company generated $107.2 million in cash from operations in the reported quarter, down from $129.9 million in the previous quarter.
In the second quarter, capital expenditures were $71.7 million. Also, free cash flow was $36.2 million.
Guidance
For third-quarter 2023, Vishay expects total revenues of $840-$880 million.
VSH anticipates a third-quarter gross margin of 27.7% (+/-50 bps).
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Vishay has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, 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
Vishay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Vishay (VSH) Down 5.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Vishay Intertechnology (VSH - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Vishay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Vishay's Q2 Earnings & Revenues Beat
Vishay Intertechnology delivered second-quarter 2023 adjusted earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by 13.3%. The figure fell by 17.1% year over year.
Revenues of $892.11 million increased by 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $873.7 million.
The solid performance of MOSFETS drove year-over-year revenue growth in the reported quarter. Strength in resistor and capacitor product lines contributed well.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.69 at the end of the second quarter.
Product Segments in Detail
Resistors: The segment generated revenues of $222.4 million (25% of the total revenues), up 4.3% year over year. The figure missed the Zacks Consensus Estimate of $224 million. The book-to-bill was 0.74.
Inductors: The product line generated revenues of $89.2 million (10% of the total revenues), which decreased 0.4% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.84.
MOSFET: The product line generated revenues of $207.4 million (23.2% of the total revenues), increasing 30.9% year over year. The figure beat the Zacks Consensus Estimate of $174 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $133.9 million (15% of the total revenues), up 1.2% year over year. The figure came below the Zacks Consensus Estimate of $137 million. The book-to-bill was 0.70.
Diodes: The segment generated revenues of $174.7 million (19.6% of the total revenues), down 9.1% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $189 million. The book-to-bill was 0.54.
Optoelectronics: The product line generated revenues of $64.4 million (7.2% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $69 million. The figure was down 17.3% from the year-ago quarter. The book-to-bill was 0.70.
Operating Details
In second-quarter 2023, the gross margin was 28.9%, contracting 140 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.9 million, increasing by 11.3% year over year. As a percentage of total revenues, the figure expanded 100 bps from the year-ago quarter to 13.8%.
The operating margin contracted 240 bps on a year-over-year basis to 15.1%.
Balance Sheet & Cash Flows
As of Jul 1, 2023, cash and cash equivalents were $1.1 billion, up from $847.5 million as of Apr 1, 2023.
Long-term debt was $639.7 million at the end of second-quarter 2023 compared with $566.8 million at the end of first-quarter 2023.
The company generated $107.2 million in cash from operations in the reported quarter, down from $129.9 million in the previous quarter.
In the second quarter, capital expenditures were $71.7 million. Also, free cash flow was $36.2 million.
Guidance
For third-quarter 2023, Vishay expects total revenues of $840-$880 million.
VSH anticipates a third-quarter gross margin of 27.7% (+/-50 bps).
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Vishay has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, 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
Vishay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.