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Vishay Intertechnology, Inc. (VSH - Free Report) delivered first-quarter 2023 adjusted earnings of 79 cents per share, surpassing the Zacks Consensus Estimate by 38.6% and rising 11.3% year over year.
Revenues of $871.05 million increased 2% year over year. The figure surpassed the Zacks Consensus Estimate of $848.05 million.
The strong performance of MOSFETS, resistor and capacitor product lines drove year-over-year revenue growth in the reported quarter.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.84 at the end of the first quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $223.14 million (25.6% of the total revenues), up 7.8% year over year.
Inductors: The product line generated revenues of $80.34 million (9.2% of the total revenues), which decreased 2.9% on a year-over-year basis.
MOSFET: The product line generated revenues of $198.2 million (22.8% of the total revenues), increasing 14.8% year over year.
Capacitors: The product line generated revenues of $133.3 million (15.3% of the total revenues), up 4.2% year over year.
Diodes: The segment generated revenues of $175.7 million (20.2% of the total revenues), down 3.6% from the year-ago quarter.
Optoelectronics: The product line generated revenues of $60.4 million (6.9% of the total revenues) in the reported quarter. The figure was down 25.4% from the year-ago quarter.
Operating Details
In first-quarter 2023, the gross margin was 32%, expanding 170 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $120.1 million, increasing 6.5% year over year. As a percentage of total revenues, the figure expanded 60 bps from the year-ago quarter to 13.8%.
The operating margin expanded 110 bps on a year-over-year basis to 18.2%.
Balance Sheet & Cash Flows
As of Apr 1, 2023, cash and cash equivalents were $847.5 million, up from $610.8 million as of Dec 31, 2022.
Long-term debt was $566.8 million at the end of first-quarter 2023 compared with $500.9 million at the end of fourth-quarter 2022.
The company generated $112.2 million in cash from operations in the reported quarter, down from $166.5 million in the previous quarter.
In the first quarter, capital expenditures were $45.6 million. Also, free cash flow was $84.6 million.
Guidance
For second-quarter 2023, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $840.01 million.
VSH anticipates a second-quarter gross margin of 29% (+/-50 bps).
Image: Bigstock
Vishay (VSH) Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) delivered first-quarter 2023 adjusted earnings of 79 cents per share, surpassing the Zacks Consensus Estimate by 38.6% and rising 11.3% year over year.
Revenues of $871.05 million increased 2% year over year. The figure surpassed the Zacks Consensus Estimate of $848.05 million.
The strong performance of MOSFETS, resistor and capacitor product lines drove year-over-year revenue growth in the reported quarter.
However, softness in diodes, optoelectronics and inductors was a concern.
Vishay’s book-to-bill ratio was 0.84 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 $223.14 million (25.6% of the total revenues), up 7.8% year over year.
Inductors: The product line generated revenues of $80.34 million (9.2% of the total revenues), which decreased 2.9% on a year-over-year basis.
MOSFET: The product line generated revenues of $198.2 million (22.8% of the total revenues), increasing 14.8% year over year.
Capacitors: The product line generated revenues of $133.3 million (15.3% of the total revenues), up 4.2% year over year.
Diodes: The segment generated revenues of $175.7 million (20.2% of the total revenues), down 3.6% from the year-ago quarter.
Optoelectronics: The product line generated revenues of $60.4 million (6.9% of the total revenues) in the reported quarter. The figure was down 25.4% from the year-ago quarter.
Operating Details
In first-quarter 2023, the gross margin was 32%, expanding 170 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $120.1 million, increasing 6.5% year over year. As a percentage of total revenues, the figure expanded 60 bps from the year-ago quarter to 13.8%.
The operating margin expanded 110 bps on a year-over-year basis to 18.2%.
Balance Sheet & Cash Flows
As of Apr 1, 2023, cash and cash equivalents were $847.5 million, up from $610.8 million as of Dec 31, 2022.
Long-term debt was $566.8 million at the end of first-quarter 2023 compared with $500.9 million at the end of fourth-quarter 2022.
The company generated $112.2 million in cash from operations in the reported quarter, down from $166.5 million in the previous quarter.
In the first quarter, capital expenditures were $45.6 million. Also, free cash flow was $84.6 million.
Guidance
For second-quarter 2023, Vishay expects total revenues of $860-$900 million. The Zacks Consensus Estimate for the same is pegged at $840.01 million.
VSH anticipates a second-quarter gross margin of 29% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Agilent Technologies (A - Free Report) , DigitalOcean (DOCN - Free Report) and AMETEK (AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies’ shares have increased 9.2% in the past year. A’s long-term earnings growth rate is currently projected at 12%.
DigitalOcean’s shares have risen 2.2% in the past year. DOCN’s long-term earnings growth rate is currently projected at 41.06%.
AMETEK’s shares have rallied 19.5% in the past year. AME’s long-term earnings growth rate is currently projected at 8.95%.