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Vishay (VSH) Q4 Earnings Beat Estimates, Revenues Down Y/Y
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Vishay Intertechnology, Inc. (VSH - Free Report) delivered fourth-quarter 2023 adjusted earnings of 37 cents per share, surpassing the Zacks Consensus Estimate by 2.8%. The figure fell 27.5% year over year.
Revenues of $785.24 million decreased 8.2% year over year. The figure beat the Zacks Consensus Estimate of $778.75 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.75 at the end of the fourth quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $198 million (25.2% of the total revenues), down 3.5% year over year. The figure beat the Zacks Consensus Estimate of $183.02 million. The book-to-bill was 0.82.
Inductors: The product line generated revenues of $87.9 million (11.2% of the total revenues), which increased 16.9% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $71.26 million. The book-to-bill was 0.91.
MOSFET: The product line generated revenues of $168.2 million (21.4% of the total revenues), decreasing 18.3% year over year. The figure beat the Zacks Consensus Estimate of $203.01 million. The book-to-bill was 0.62.
Capacitors: The product line generated revenues of $114 million (14.5% of the total revenues), down 7.5% year over year. The figure beat the Zacks Consensus Estimate of $113.95 million. The book-to-bill was 0.95.
Diodes: The segment generated revenues of $163.3 million (20.8% of the total revenues), down 10.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $158.4 million. The book-to-bill was 0.61.
Optoelectronics: The product line generated revenues of $53.9 million (6.9% of the total revenues), down 15.8% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $55.4 million. The figure decreased 12.3% from the year-ago quarter. The book-to-bill was 0.59.
Operating Details
In fourth-quarter 2023, the gross margin was 25.6%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.8 million, increasing 7.9% year over year. As a percentage of total revenues, the figure expanded 230 bps from the year-ago quarter to 15.6%.
The operating margin contracted 590 bps on a year-over-year basis to 9.9%.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents were $972.7 million, down from $1.1 billion as of Sep 30, 2023. Short-term investments were $35.8 million, down from $78.9 million at the end of the prior quarter.
Long-term debt was $818.2 million at the end of fourth-quarter 2023 compared with $817.3 million at the end of third-quarter 2023.
The company generated $6.3 million in cash from operations in the reported quarter, down from $122.3 million in the previous quarter.
In the fourth quarter, capital expenditures were $145.3 million. Also, free cash outflow was $138.9 million.
Guidance
For first-quarter 2024, Vishay expects total revenues of $715-$755 million. The Zacks Consensus Estimate for the same is pegged at $755.04 million.
VSH anticipates a first-quarter gross margin of 24.0% (+/-50 bps).
The company anticipates first-quarter selling, general and administrative expenses in the range of $128-$132 million.
For 2024, Vishay expects a normalized effective tax rate of 31%.
The company anticipates 2024 selling, general and administrative expenses in the range of $523-$533 million at currency exchange rates.
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) , and Badger Meter (BMI - Free Report) . While BlackLine and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Badger Meter carries a Zacks Rank #2 (Buy), at present.
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Vishay (VSH) Q4 Earnings Beat Estimates, Revenues Down Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) delivered fourth-quarter 2023 adjusted earnings of 37 cents per share, surpassing the Zacks Consensus Estimate by 2.8%. The figure fell 27.5% year over year.
Revenues of $785.24 million decreased 8.2% year over year. The figure beat the Zacks Consensus Estimate of $778.75 million.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.75 at the end of the fourth 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 $198 million (25.2% of the total revenues), down 3.5% year over year. The figure beat the Zacks Consensus Estimate of $183.02 million. The book-to-bill was 0.82.
Inductors: The product line generated revenues of $87.9 million (11.2% of the total revenues), which increased 16.9% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $71.26 million. The book-to-bill was 0.91.
MOSFET: The product line generated revenues of $168.2 million (21.4% of the total revenues), decreasing 18.3% year over year. The figure beat the Zacks Consensus Estimate of $203.01 million. The book-to-bill was 0.62.
Capacitors: The product line generated revenues of $114 million (14.5% of the total revenues), down 7.5% year over year. The figure beat the Zacks Consensus Estimate of $113.95 million. The book-to-bill was 0.95.
Diodes: The segment generated revenues of $163.3 million (20.8% of the total revenues), down 10.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $158.4 million. The book-to-bill was 0.61.
Optoelectronics: The product line generated revenues of $53.9 million (6.9% of the total revenues), down 15.8% from the year-ago quarter. The figure came below the Zacks Consensus Estimate of $55.4 million. The figure decreased 12.3% from the year-ago quarter. The book-to-bill was 0.59.
Operating Details
In fourth-quarter 2023, the gross margin was 25.6%, contracting 350 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $122.8 million, increasing 7.9% year over year. As a percentage of total revenues, the figure expanded 230 bps from the year-ago quarter to 15.6%.
The operating margin contracted 590 bps on a year-over-year basis to 9.9%.
Balance Sheet & Cash Flows
As of Dec 31, 2023, cash and cash equivalents were $972.7 million, down from $1.1 billion as of Sep 30, 2023. Short-term investments were $35.8 million, down from $78.9 million at the end of the prior quarter.
Long-term debt was $818.2 million at the end of fourth-quarter 2023 compared with $817.3 million at the end of third-quarter 2023.
The company generated $6.3 million in cash from operations in the reported quarter, down from $122.3 million in the previous quarter.
In the fourth quarter, capital expenditures were $145.3 million. Also, free cash outflow was $138.9 million.
Guidance
For first-quarter 2024, Vishay expects total revenues of $715-$755 million. The Zacks Consensus Estimate for the same is pegged at $755.04 million.
VSH anticipates a first-quarter gross margin of 24.0% (+/-50 bps).
The company anticipates first-quarter selling, general and administrative expenses in the range of $128-$132 million.
For 2024, Vishay expects a normalized effective tax rate of 31%.
The company anticipates 2024 selling, general and administrative expenses in the range of $523-$533 million at currency exchange rates.
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are BlackLine (BL - Free Report) , Arista Networks (ANET - Free Report) , and Badger Meter (BMI - Free Report) . While BlackLine and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Badger Meter carries a Zacks Rank #2 (Buy), at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine shares have lost 3.5% in the year-to-date period. The long-term earnings growth rate for BL is currently projected at 50.56%.
Arista Networks shares have gained 13.7% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 20.15%.
Badger Meter shares have lost 7.3% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 12.27%.