It has been about a month since the last earnings report for Vishay Intertechnology (VSH). Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vishay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vishay reported breakeven non-GAAP earnings for the fourth quarter of 2024. The bottom-line result missed the Zacks Consensus Estimate of earnings of 11 cents.
Vishay Intertechnology’s revenues of $714.72 million missed the Zacks Consensus Estimate by 0.73%. The figure declined 9% on a year-over-year basis.
VSH’s poor performance was negatively impacted by softness across its segments (MOSFET, Diodes, Optoelectronics, Resistors and Inductors).
Revenues from MOSFET (20.5% of total revenues) were $146.6 million, down 12.8% year over year. The book-to-bill was 0.98.
Third-quarter revenues from Diodes (19.8% of total revenues) were $141.4 million, down 13.4% year over year. The book-to-bill was 1.00.
Revenues from Optoelectronics (6.6% of total revenues) in the fourth quarter were $46.9 million, down 13% year over year. The book-to-bill was 1.00.
Revenues from Resistors (24.8% of total revenues) were $177 million, down 10.6% year over year. The book-to-bill was 0.91.
Revenues from Inductors (11.7% of total revenues) were $83.4 million, down 5.1% year over year. The book-to-bill was 1.01.
Revenues from Capacitors (16.7% of total revenues) were $119.3 million, up 4.6% year over year. The book-to-bill was 1.21.
VSH’s fourth-quarter adjusted EBITDA was $66.21 million, down 48.1% year over year. The adjusted EBITDA margin contracted 700 basis points (bps) on a year-over-year basis to 9.3%.
Adjusted operating margin was 1.4% in the reported quarter.
As of Dec. 31, 2024, VSH’s cash and cash equivalents were $590.3 million compared with $643.8 million as of Sept. 30.
Long-term debt was $905 million as of Dec. 31, higher than $820.8 million as of Sept. 30.
Net cash from operating activities was $173.7 million, while the company generated a negative free cash flow of $75.6 million during the quarter.
For the first quarter, Vishay Intertechnology expects revenues to be $710 million (+/- $20 million).
Operating margin is anticipated to be 19.0% (+/- 50 basis points).
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -225% due to these changes.
At this time, Vishay has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Vishay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
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