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Vishay (VSH) Q3 Earnings Beat Estimates, Revenues Down Y/Y
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Vishay Intertechnology, Inc. (VSH - Free Report) delivered third-quarter 2023 adjusted earnings of 60 cents per share, surpassing the Zacks Consensus Estimate by 7.1%. The figure fell by 35.5% year over year.
Revenues of $853.7 million decreased by 7.7% year over year. The figure lagged the Zacks Consensus Estimate of $859.4 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.63 at the end of the third quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $199.9 million (23% of the total revenues), down 3.6% year over year. The figure missed the Zacks Consensus Estimate of $216 million. The book-to-bill was 0.65.
Inductors: The product line generated revenues of $89.9 million (10.5% of the total revenues), which increased 7.7% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $76 million. The book-to-bill was 0.85.
MOSFET: The product line generated revenues of $205 million (24% of the total revenues), decreasing 9% year over year. The figure beat the Zacks Consensus Estimate of $204 million. The book-to-bill was 0.50.
Capacitors: The product line generated revenues of $117.6 million (14% of the total revenues), down 6.8% year over year. The figure came below the Zacks Consensus Estimate of $123 million. The book-to-bill was 0.75.
Diodes: The segment generated revenues of $176.8 million (21% of the total revenues), down 15.4% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $172 million. The book-to-bill was 0.58.
Optoelectronics: The product line generated revenues of $64.4 million (7.5% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $66 million. The figure was down 12.3% from the year-ago quarter. The book-to-bill was 0.57.
Operating Details
In third-quarter 2023, the gross margin was 27.8%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.5 million, increasing by 15.1% year over year. As a percentage of total revenues, the figure expanded 290 bps from the year-ago quarter to 14.4%.
The operating margin contracted 630 bps on a year-over-year basis to 13.5%.
Balance Sheet & Cash Flows
As of Sep 30, 2023, cash and cash equivalents were $1.095 billion, up from $1.089 billion as of Jul 1, 2023. Short-term investments were $78.9 million, up from $14.4 million at the end of the prior quarter.
Long-term debt was $817.3 million at the end of third-quarter 2023 compared with $639.7 million at the end of second-quarter 2023.
The company generated $122.3 million in cash from operations in the reported quarter, up from $107.2 million in the previous quarter.
In the third quarter, capital expenditures were $66.8 million. Also, free cash flow was $55.5 million.
Guidance
For fourth-quarter 2023, Vishay expects total revenues of $770-$810 million. The Zacks Consensus Estimate for the same is pegged at $787.5 million.
VSH anticipates a fourth-quarter gross margin of 25.5% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Vishay (VSH) Q3 Earnings Beat Estimates, Revenues Down Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) delivered third-quarter 2023 adjusted earnings of 60 cents per share, surpassing the Zacks Consensus Estimate by 7.1%. The figure fell by 35.5% year over year.
Revenues of $853.7 million decreased by 7.7% year over year. The figure lagged the Zacks Consensus Estimate of $859.4 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.63 at the end of the third 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 $199.9 million (23% of the total revenues), down 3.6% year over year. The figure missed the Zacks Consensus Estimate of $216 million. The book-to-bill was 0.65.
Inductors: The product line generated revenues of $89.9 million (10.5% of the total revenues), which increased 7.7% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $76 million. The book-to-bill was 0.85.
MOSFET: The product line generated revenues of $205 million (24% of the total revenues), decreasing 9% year over year. The figure beat the Zacks Consensus Estimate of $204 million. The book-to-bill was 0.50.
Capacitors: The product line generated revenues of $117.6 million (14% of the total revenues), down 6.8% year over year. The figure came below the Zacks Consensus Estimate of $123 million. The book-to-bill was 0.75.
Diodes: The segment generated revenues of $176.8 million (21% of the total revenues), down 15.4% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $172 million. The book-to-bill was 0.58.
Optoelectronics: The product line generated revenues of $64.4 million (7.5% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $66 million. The figure was down 12.3% from the year-ago quarter. The book-to-bill was 0.57.
Operating Details
In third-quarter 2023, the gross margin was 27.8%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.5 million, increasing by 15.1% year over year. As a percentage of total revenues, the figure expanded 290 bps from the year-ago quarter to 14.4%.
The operating margin contracted 630 bps on a year-over-year basis to 13.5%.
Balance Sheet & Cash Flows
As of Sep 30, 2023, cash and cash equivalents were $1.095 billion, up from $1.089 billion as of Jul 1, 2023. Short-term investments were $78.9 million, up from $14.4 million at the end of the prior quarter.
Long-term debt was $817.3 million at the end of third-quarter 2023 compared with $639.7 million at the end of second-quarter 2023.
The company generated $122.3 million in cash from operations in the reported quarter, up from $107.2 million in the previous quarter.
In the third quarter, capital expenditures were $66.8 million. Also, free cash flow was $55.5 million.
Guidance
For fourth-quarter 2023, Vishay expects total revenues of $770-$810 million. The Zacks Consensus Estimate for the same is pegged at $787.5 million.
VSH anticipates a fourth-quarter gross margin of 25.5% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector are Asure Software (ASUR - Free Report) , Adobe (ADBE - Free Report) and Arista Networks (ANET - Free Report) . Asure Software sports a Zacks Rank #1 (Strong Buy) and Adobe and Arista Networks each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have lost 9.1% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 27%.
Adobe shares have gained 67.5% in the year-to-date period. The long-term earnings growth rate for ADBE is currently projected at 13.54%.
Arista Networks shares have increased 74.1% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.40%.