Vishay Intertechnology VSH reported third-quarter 2024 adjusted earnings of 8 cents per share, missing the Zacks Consensus Estimate by 46.7%. The figure declined 86.7% year over year.

Excepting the latest miss, VSH’s earnings beat the Zacks Consensus Estimate in the remaining three of the trailing four quarters, with an average negative surprise being 3.12%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

VSH’s third-quarter revenues of $735.4 million missed the consensus mark by 1.49%. 

The figure fell 13.8% year over year, which demonstrated a prolonged inventory correction process, as industrial consumer consumption continues to be sluggish, followed by a broader macro weakness in Europe. The weak bottom-line results were primarily due to unexpectedly high operational expenses.

Vishay Intertechnology’s fourth-quarter 2024 guidance is weak, which is expected to drag down shares despite its anticipations of well-managing expenses and costs while capitalizing on the industry up-cycle. 

Shares of VSH were up slightly in after-hours trading. On a year-to-date basis, shares of VSH plunged 24.1% compared with the Zacks Semiconductor-Discretes industry’s decline of 51.7%.

VSH’s Q3 Details

VSH’s poor top-line performance was negatively impacted by softness across its segments (MOSFET, Diodes, Optoelectronics, Resistors, Inductors and Capacitors).

Revenues from MOSFET (20% of total revenues) were $147.1 million, down 28.2% year over year. The book-to-bill was 0.84.

Third-quarter revenues from Diodes (19.7% of total revenues) were $145.2 million, down 17.9% year over year. The book-to-bill was 0.74.

Revenues from Optoelectronics (8.6% of total revenues) in the third quarter were $63.2 million, down 1.9% year over year. The book-to-bill was 0.77.

Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise

Vishay Intertechnology, Inc. price-consensus-eps-surprise-chart | Vishay Intertechnology, Inc. Quote

Revenues from Resistors (24.6% of total revenues) were $180.9 million, down 9.5% year over year. The book-to-bill was 0.95.

Revenues from Inductors (12.3% of total revenues) were $90.3 million, up 0.4% year over year. The book-to-bill was 0.83.

Revenues from Capacitors (14.8% of total revenues) were $108.7 million, down 7.6% year over year. The book-to-bill was 1.10.

VSH’s third-quarter adjusted EBITDA was $71.5 million, down 55.2% year over year. The adjusted EBITDA margin contracted 900 basis points (bps) on a year-over-year basis to 9.7%.

Adjusted operating margin was 3% in the reported quarter.

Vishay Intertechnology’s Balance Sheet & Cash Flow

As of Sept. 30, 2024, VSH’s cash and cash equivalents were $643.8 million compared with $672.7 million as of June 30.

Long-term debt was $820.8 million as of Sept. 30, slightly higher than $820.6 million as of June 30.

Net cash from operating activities was $106 million, while free cash flow was $8.8 million.

VSH Offers Dim Q4 Guidance

For the fourth quarter, Vishay Intertechnology expects revenues to be $720 million (+/- $20 million). 

The Zacks Consensus Estimate for revenues is pegged at $752.4 million, suggesting a year-over-year fall of 4.18%.

Operating margin is anticipated to be 20.0% (+/- 50 bps).

The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, indicating a year-over-year decline of 56.8%.

Zacks Rank & Stocks to Consider

Currently, VSH carries a Zacks Rank #3 (Hold) at present.

Shopify SHOP, CyberArk Software CYBR and Bilibili BILI are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. 

Shopify and CyberArk Software sport a Zacks Rank #1 (Strong Buy) each, while Bilibili carries a Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SHOP shares have appreciated 5.2% year to date. Shopify is set to report third-quarter 2024 results on Nov. 12.

CYBR shares have jumped 34.4% year to date. CyberArk Software is set to report third-quarter 2024 results on Nov. 13.

BILI shares have surged 82.1% year to date. Bilibili is set to report third-quarter 2024 results on Nov. 14.

 

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