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Vishay Intertechnology, Inc. (VSH - Free Report) reported first-quarter 2022 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate by 22.4%. The bottom line surged 54% year over year and 15% sequentially.
Revenues of $853.8 million increased 11.7% year over year and 1.3% from the previous quarter’s level. Further, the figure surpassed the Zacks Consensus Estimate by 1.2%.
The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove year-over-year revenue growth in the reported quarter.
Vishay’s book-to-bill ratio was 1.14 at the end of the first quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $207 million (24% of total revenues), up 10.9% year over year. The book-to-bill ratio for the product line was 1.24 in the reported quarter.
Inductors: The product line generated revenues of $82.8 million (10% of total revenues), which decreased 0.8% on a year-over-year basis. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.
MOSFETs: The product line generated revenues of $172.7 million (20% of total revenues), improving 12.7% year over year. The book-to-bill ratio for the product line was 1.28 at the end of the reported quarter.
Capacitors: The product line generated revenues of $128 million (15% of total revenues), up 20.3% year over year. The book-to-bill ratio for the product line was 1.02 in the reported quarter.
Diodes: The segment generated revenues of $182.3 million (21% of total revenues), up 16% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 1.16 in the quarter under review.
Optoelectronics: The product line generated revenues of $81 million (10% of the top line) in the reported quarter. The figure was up 4.2% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.78 for the period.
End-Market Details
Industrial: The industrial market generated $337.4 million (40% of total revenues) in the reported quarter, up 25% year over year.
Automotive: The automotive market generated $259.5 million (30% of total revenues) with a marginal increment of 1% from the prior-year period’s level.
Telecommunications: The telecommunications market generated $31 million (4% of total revenues), increasing 25% from the same quarter’s level last year.
Computing: The computing market generated $67.9 million (8% of total revenues), up 13% year over year.
Consumer Products: The consumer products market generated $38.7 million (4% of total revenues), decreasing 5% from the year-ago period’s level.
Power Supplies: The power supplies market generated $40.3 million (5% of total revenues), up 14% year over year.
Military & Aerospace: The military & aerospace market generated $46.5 million (5% of total revenues) and rose 12% from the same quarter last year.
Medical: The medical market generated $32.5 million (4% of total revenues), declining 8% on a year-over-year basis.
Regional Details
Vishay generated $344 million revenues from Asia (40% of total revenues), which increased 6.7% year over year. Revenues generated from Europe increased 8.1% from the year-ago quarter’s level to $289.98 million (34% of total revenues). VSH generated $219.8 million (26% of total revenues) from Americas, up 26.4% year over year.
Operating Results
In first-quarter 2022 the gross margin was 30.3%, expanding 380 basis points (bps) on a year-over-year basis.
Selling, general and administrative (SG&A) expenses were $112.9 million, increasing 6.8% year over year. As a percentage of total revenues, SG&A expenses contracted 60 bps from the year-ago quarter’s level to 13.2%.
The operating margin expanded 440 bps on a year-over-year basis to 17.1%.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents were $789.2 million, up from $774.1 million as of Dec 31, 2021. Short-term investments were $96.6 million, down from $146.7 million in the previous quarter. Inventories were $602.9 million, up from $536.5 million in the prior quarter.
Long-term debt was $456.5 million at the end of the first quarter of 2022 compared with $455.7 million at the end of the fourth quarter of 2021.
In the reported quarter, Vishay generated $33.6 million of cash from operations, down from $146.7 million in the previous quarter.
VSH’s free cash flow in the first quarter was ($2.3) million against $46.5 million in the prior quarter.
Vishay returned $24.4 million to its stockholders, of which $14.5 million was paid out as dividends while $9.9 million was stock repurchased.
Guidance
For second-quarter 2022, Vishay expects total revenues of $830-$870 million. The Zacks Consensus Estimate for the same is pegged at $879.8 million.
VSH anticipates a second-quarter gross margin of 28.1% (+/-50 bps).
Zacks Rank & Other Stocks to Consider
Vishay currently has a Zacks Rank #2 (Buy). Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Analog Devices (ADI - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.
Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.
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Vishay (VSH) Q1 Earnings, Revenues Surpass Estimates
Vishay Intertechnology, Inc. (VSH - Free Report) reported first-quarter 2022 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate by 22.4%. The bottom line surged 54% year over year and 15% sequentially.
Revenues of $853.8 million increased 11.7% year over year and 1.3% from the previous quarter’s level. Further, the figure surpassed the Zacks Consensus Estimate by 1.2%.
The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove year-over-year revenue growth in the reported quarter.
Vishay’s book-to-bill ratio was 1.14 at the end of the first quarter.
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 $207 million (24% of total revenues), up 10.9% year over year. The book-to-bill ratio for the product line was 1.24 in the reported quarter.
Inductors: The product line generated revenues of $82.8 million (10% of total revenues), which decreased 0.8% on a year-over-year basis. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.
MOSFETs: The product line generated revenues of $172.7 million (20% of total revenues), improving 12.7% year over year. The book-to-bill ratio for the product line was 1.28 at the end of the reported quarter.
Capacitors: The product line generated revenues of $128 million (15% of total revenues), up 20.3% year over year. The book-to-bill ratio for the product line was 1.02 in the reported quarter.
Diodes: The segment generated revenues of $182.3 million (21% of total revenues), up 16% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 1.16 in the quarter under review.
Optoelectronics: The product line generated revenues of $81 million (10% of the top line) in the reported quarter. The figure was up 4.2% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.78 for the period.
End-Market Details
Industrial: The industrial market generated $337.4 million (40% of total revenues) in the reported quarter, up 25% year over year.
Automotive: The automotive market generated $259.5 million (30% of total revenues) with a marginal increment of 1% from the prior-year period’s level.
Telecommunications: The telecommunications market generated $31 million (4% of total revenues), increasing 25% from the same quarter’s level last year.
Computing: The computing market generated $67.9 million (8% of total revenues), up 13% year over year.
Consumer Products: The consumer products market generated $38.7 million (4% of total revenues), decreasing 5% from the year-ago period’s level.
Power Supplies: The power supplies market generated $40.3 million (5% of total revenues), up 14% year over year.
Military & Aerospace: The military & aerospace market generated $46.5 million (5% of total revenues) and rose 12% from the same quarter last year.
Medical: The medical market generated $32.5 million (4% of total revenues), declining 8% on a year-over-year basis.
Regional Details
Vishay generated $344 million revenues from Asia (40% of total revenues), which increased 6.7% year over year. Revenues generated from Europe increased 8.1% from the year-ago quarter’s level to $289.98 million (34% of total revenues). VSH generated $219.8 million (26% of total revenues) from Americas, up 26.4% year over year.
Operating Results
In first-quarter 2022 the gross margin was 30.3%, expanding 380 basis points (bps) on a year-over-year basis.
Selling, general and administrative (SG&A) expenses were $112.9 million, increasing 6.8% year over year. As a percentage of total revenues, SG&A expenses contracted 60 bps from the year-ago quarter’s level to 13.2%.
The operating margin expanded 440 bps on a year-over-year basis to 17.1%.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents were $789.2 million, up from $774.1 million as of Dec 31, 2021. Short-term investments were $96.6 million, down from $146.7 million in the previous quarter. Inventories were $602.9 million, up from $536.5 million in the prior quarter.
Long-term debt was $456.5 million at the end of the first quarter of 2022 compared with $455.7 million at the end of the fourth quarter of 2021.
In the reported quarter, Vishay generated $33.6 million of cash from operations, down from $146.7 million in the previous quarter.
VSH’s free cash flow in the first quarter was ($2.3) million against $46.5 million in the prior quarter.
Vishay returned $24.4 million to its stockholders, of which $14.5 million was paid out as dividends while $9.9 million was stock repurchased.
Guidance
For second-quarter 2022, Vishay expects total revenues of $830-$870 million. The Zacks Consensus Estimate for the same is pegged at $879.8 million.
VSH anticipates a second-quarter gross margin of 28.1% (+/-50 bps).
Zacks Rank & Other Stocks to Consider
Vishay currently has a Zacks Rank #2 (Buy). Investors interested in the broader technology sector can consider stocks like Jabil (JBL - Free Report) , Analog Devices (ADI - Free Report) , and Broadcom (AVGO - Free Report) . While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.
Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.
Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.