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Vishay (VSH) Q1 Earnings Top Estimates, Revenues Rise Y/Y
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Vishay Intertechnology, Inc. (VSH - Free Report) reported first-quarter 2021 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate by 2.2%. Further, the bottom line improved 64.3% sequentially and 119% year over year.
Revenues of $764.6 million lagged the Zacks Consensus Estimate of $765 million. Notably, the top line was up 24.8% from the year-ago quarter and 14.6% from the prior quarter.
Strong momentum across resistor, inductor, diode, MOSFET, capacitor and opto product lines drove top-line growth in the reported quarter. Further, strengthening position in the automotive sector’s Asia markets, especially China, was a tailwind.
Notably, Vishay’s book-to-bill ratio was 1.67 at the end of the first quarter.
The company’s continued focus on expanding its manufacturing capacities is a key catalyst. Further, growth prospects related to factory automation, electrical vehicles, and 5G infrastructure remain positives for the company.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $187 million (24.4% of total revenues), up 12% year over year. The strong momentum of resistors acrossautomotive, industrialand medical markets was a positive. Notably, the book-to-bill ratio for the product line was 1.50 in the reported quarter.
Inductors: The product line generated revenues of $84 million (11% of total revenues), which increased 12% on a year-over-year basis. This was primarily attributed to the company’s well-performing magnetics,which continued to drive its specialty business.The book-to-bill ratio for the product line was 1.13 at the end of the reported quarter. MOSFET: The product line generated revenues of $153 million (20% of total revenues), improving 29% year over year. The book-to-bill ratio for the product line was 1.97 at the end of the reported quarter. Growing momentum across the automotive space and solid demand environment contributed well.
Capacitors: The product line generated revenues of $106 million (13.9% of total revenues), up 9% year over year. The book-to-bill ratio for the product line was 1.73 in the reported quarter. The product line witnessed a solid momentum across America and Europe. Further, growing opportunities for capacitors in the areas of power transmission and electro cars remain tailwinds.
Diodes: The segment generated revenues of $157 million (20.5% of total revenues), up 32% from the year-ago quarter. Vishay’s strong momentum across the automotive and industrial markets with diodes remained a positive. Notably, the book-to-bill ratio for the product line was 1.85inthe quarter under review.
Optoelectronics: The product line generated revenues of $78 million (10.2% of total revenues) inthe reported quarter. The figure was up 37% from the year-ago quarter. The book-to-bill ratio for the product line was 1.66 inthe period. Strengthening demand environment for the product line contributed well.
Operating Details
In first-quarter 2021, gross margin was 26.5%, expanding 250 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $105.7 million, increasing5.9% year over year. As a percentage of total revenues, the figure contracted 250 bps from the year-ago quarter to 13.8%.
Consequently, operating margin expanded 500 bps on a year-over-year basis to 12.7%.
Balance Sheet & Cash Flows
As of Apr 3, 2021, cash and cash equivalents were $643.8 million, up from $619.9millionas of Dec 31, 2020. Short-term investments were $137.3 million, down from $158.5 million in the previous quarter. Inventories were $473.9 million, up from $448.3 million in the prior quarter.
Long-term debt was $453.2 million at the end of the first quarter compared with $394.9 million at the end of the fourth quarter.
In the first quarter, the company generated $57.3 million of cash from operations, down from $125.7 million in the previous quarter.
The company’s free cash flow in the reported quarter was $28.9 million, declining from $73.01 million in the prior quarter.
Guidance
For second-quarter 2021, Vishay expects total revenues of $790-$830 million. The Zacks Consensus Estimate for the same is pegged at $675.6 million.
Further, the company anticipates second-quarter gross margin to be 27.3%, with +/-60 bps.
Zacks Rank & Other Stocks to Consider
Vishay currently sports a Zacks Rank #1 (Strong Buy).
Long-term earnings growth rate of Agilent, Microchip and NVIDIA is pegged at 9%, 15.5% and 15.1%, respectively.
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Vishay (VSH) Q1 Earnings Top Estimates, Revenues Rise Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) reported first-quarter 2021 adjusted earnings of 46 cents per share, which beat the Zacks Consensus Estimate by 2.2%. Further, the bottom line improved 64.3% sequentially and 119% year over year.
Revenues of $764.6 million lagged the Zacks Consensus Estimate of $765 million. Notably, the top line was up 24.8% from the year-ago quarter and 14.6% from the prior quarter.
Strong momentum across resistor, inductor, diode, MOSFET, capacitor and opto product lines drove top-line growth in the reported quarter. Further, strengthening position in the automotive sector’s Asia markets, especially China, was a tailwind.
Notably, Vishay’s book-to-bill ratio was 1.67 at the end of the first quarter.
The company’s continued focus on expanding its manufacturing capacities is a key catalyst. Further, growth prospects related to factory automation, electrical vehicles, and 5G infrastructure remain positives for the company.
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 $187 million (24.4% of total revenues), up 12% year over year. The strong momentum of resistors acrossautomotive, industrialand medical markets was a positive. Notably, the book-to-bill ratio for the product line was 1.50 in the reported quarter.
Inductors: The product line generated revenues of $84 million (11% of total revenues), which increased 12% on a year-over-year basis. This was primarily attributed to the company’s well-performing magnetics,which continued to drive its specialty business.The book-to-bill ratio for the product line was 1.13 at the end of the reported quarter.
MOSFET: The product line generated revenues of $153 million (20% of total revenues), improving 29% year over year. The book-to-bill ratio for the product line was 1.97 at the end of the reported quarter. Growing momentum across the automotive space and solid demand environment contributed well.
Capacitors: The product line generated revenues of $106 million (13.9% of total revenues), up 9% year over year. The book-to-bill ratio for the product line was 1.73 in the reported quarter. The product line witnessed a solid momentum across America and Europe. Further, growing opportunities for capacitors in the areas of power transmission and electro cars remain tailwinds.
Diodes: The segment generated revenues of $157 million (20.5% of total revenues), up 32% from the year-ago quarter. Vishay’s strong momentum across the automotive and industrial markets with diodes remained a positive. Notably, the book-to-bill ratio for the product line was 1.85inthe quarter under review.
Optoelectronics: The product line generated revenues of $78 million (10.2% of total revenues) inthe reported quarter. The figure was up 37% from the year-ago quarter. The book-to-bill ratio for the product line was 1.66 inthe period. Strengthening demand environment for the product line contributed well.
Operating Details
In first-quarter 2021, gross margin was 26.5%, expanding 250 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $105.7 million, increasing5.9% year over year. As a percentage of total revenues, the figure contracted 250 bps from the year-ago quarter to 13.8%.
Consequently, operating margin expanded 500 bps on a year-over-year basis to 12.7%.
Balance Sheet & Cash Flows
As of Apr 3, 2021, cash and cash equivalents were $643.8 million, up from $619.9millionas of Dec 31, 2020. Short-term investments were $137.3 million, down from $158.5 million in the previous quarter. Inventories were $473.9 million, up from $448.3 million in the prior quarter.
Long-term debt was $453.2 million at the end of the first quarter compared with $394.9 million at the end of the fourth quarter.
In the first quarter, the company generated $57.3 million of cash from operations, down from $125.7 million in the previous quarter.
The company’s free cash flow in the reported quarter was $28.9 million, declining from $73.01 million in the prior quarter.
Guidance
For second-quarter 2021, Vishay expects total revenues of $790-$830 million. The Zacks Consensus Estimate for the same is pegged at $675.6 million.
Further, the company anticipates second-quarter gross margin to be 27.3%, with +/-60 bps.
Zacks Rank & Other Stocks to Consider
Vishay currently sports a Zacks Rank #1 (Strong Buy).
Some better-ranked stocks in the broader technology sector worth consideration are Agilent Technologies (A - Free Report) , Microchip (MCHP - Free Report) and NVIDIA (NVDA - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate of Agilent, Microchip and NVIDIA is pegged at 9%, 15.5% and 15.1%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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