A month has gone by since the last earnings report for Vishay Intertechnology (VSH Quick QuoteVSH - Free Report) . Shares have lost about 6.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Vishay Q2 Earnings Beat Estimates, Revenues Down Y/Y

Vishay Intertechnology delivered second-quarter 2024 adjusted earnings of 17 cents per share, surpassing the Zacks Consensus Estimate by 21.4%. The figure fell 75% year over year.

Revenues of $741.24 million decreased 16.9% year over year. The figure lagged the Zacks Consensus Estimate by 1.3%.

Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.

Vishay’s book-to-bill ratio was 0.86 at the end of the second quarter.

Product Segments in Detail

Resistors: The segment generated revenues of $179.5 million (24.2% of the total revenues), down 19.3% year over year. The book-to-bill was 0.87.

Inductors: The product line generated revenues of $94.1 million (12.7% of the total revenues), which increased 5.5% on a year-over-year basis. The book-to-bill was 0.97.

MOSFET: The product line generated revenues of $155.1 million (20.9% of the total revenues), decreasing 25.2% year over year. The book-to-bill was 0.79.

Capacitors: The product line generated revenues of $113.4 million (15.3% of the total revenues), down 15.3% year over year. The book-to-bill was 0.87.

Diodes: The segment generated revenues of $146.3 million (19.7% of the total revenues), down 16.3% from the year-ago quarter. The book-to-bill was 0.85.

Optoelectronics: The product line generated revenues of $53 million (7.2% of the total revenues) in the reported quarter. The figure was down 17.7% from the year-ago quarter. The book-to-bill was 0.82.

Operating Details

In the second quarter of 2024, the gross margin was 22%, contracting 690 basis points (bps) on a year-over-year basis.

Selling, general and administrative expenses were $124.95 million, increasing by 1.7% year over year. As a percentage of total revenues, the figure expanded 310 bps from the year-ago quarter to 16.9%.

The operating margin contracted 1000 bps on a year-over-year basis to 5.1%.

Balance Sheet & Cash Flows

As of Jun 29, 2024, cash and cash equivalents were $672.73 million, down from $ 796.5 million as of Mar 30, 2024. Short-term investments were $15.32 million, down from $37.4 million at the end of the prior quarter.

Long-term debt was $820.6 million at the end of second-quarter 2024 compared with $819.4 million at the end of first-quarter 2024.

The company used $24.73 million in cash from operations in the reported quarter compared with $80.2 million generated in the previous quarter.

In the second quarter, capital expenditures were $62.6 million. Also, free cash outflow was $86.8 million.

Guidance

For the third quarter of 2024, Vishay expects total revenues of $745 million (+/- $20 million).

VSH anticipates a third-quarter gross margin of 21% (+/-50 bps).

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Vishay has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. 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 D. 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 has been net zero. Notably, Vishay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.