It's been a good week for Vishay Intertechnology, Inc. (NYSE:VSH) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to US$17.89. Revenues came in at US$735m, in line with estimates, while Vishay Intertechnology reported a statutory loss of US$0.14 per share, well short of prior analyst forecasts for a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Vishay Intertechnology

Following the latest results, Vishay Intertechnology's three analysts are now forecasting revenues of US$3.10b in 2025. This would be a reasonable 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 64% to US$1.04. Before this earnings report, the analysts had been forecasting revenues of US$3.25b and earnings per share (EPS) of US$1.43 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$21.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Vishay Intertechnology, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$17.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Vishay Intertechnology's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vishay Intertechnology.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Vishay Intertechnology going out to 2025, and you can see them free on our platform here.

Even so, be aware that Vishay Intertechnology is showing 3 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.