We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Vishay (VSH) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Read MoreHide Full Article
Vishay Intertechnology, Inc. (VSH - Free Report) delivered second-quarter 2024 adjusted earnings of 17 cents per share, surpassing the Zacks Consensus Estimate by 21.4%. The figure fell 75% year over year.
Revenues of $741.24 million decreased 16.9% year over year. The figure lagged the Zacks Consensus Estimate by 1.3%.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.86 at the end of the second quarter.
Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
Resistors: The segment generated revenues of $179.5 million (24.2% of the total revenues), down 19.3% year over year. The book-to-bill was 0.87.
Inductors: The product line generated revenues of $94.1 million (12.7% of the total revenues), which increased 5.5% on a year-over-year basis. The book-to-bill was 0.97.
MOSFET: The product line generated revenues of $155.1 million (20.9% of the total revenues), decreasing 25.2% year over year. The book-to-bill was 0.79.
Capacitors: The product line generated revenues of $113.4 million (15.3% of the total revenues), down 15.3% year over year. The book-to-bill was 0.87.
Diodes: The segment generated revenues of $146.3 million (19.7% of the total revenues), down 16.3% from the year-ago quarter. The book-to-bill was 0.85.
Optoelectronics: The product line generated revenues of $53 million (7.2% of the total revenues) in the reported quarter. The figure was down 17.7% from the year-ago quarter. The book-to-bill was 0.82.
Operating Details
In the second quarter of 2024, the gross margin was 22%, contracting 690 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $124.95 million, increasing by 1.7% year over year. As a percentage of total revenues, the figure expanded 310 bps from the year-ago quarter to 16.9%.
The operating margin contracted 1000 bps on a year-over-year basis to 5.1%.
Balance Sheet & Cash Flows
As of Jun 29, 2024, cash and cash equivalents were $672.73 million, down from $ 796.5 million as of Mar 30, 2024. Short-term investments were $15.32 million, down from $37.4 million at the end of the prior quarter.
Long-term debt was $820.6 million at the end of second-quarter 2024 compared with $819.4 million at the end of first-quarter 2024.
The company used $24.73 million in cash from operations in the reported quarter compared with $80.2 million generated in the previous quarter.
In the second quarter, capital expenditures were $62.6 million. Also, free cash outflow was $86.8 million.
Guidance
For the third quarter of 2024, Vishay expects total revenues of $745 million (+/- $20 million). The Zacks Consensus Estimate for the same is pegged at $768.1 million.
VSH anticipates a third-quarter gross margin of 21% (+/-50 bps).
Image: Bigstock
Vishay (VSH) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Vishay Intertechnology, Inc. (VSH - Free Report) delivered second-quarter 2024 adjusted earnings of 17 cents per share, surpassing the Zacks Consensus Estimate by 21.4%. The figure fell 75% year over year.
Revenues of $741.24 million decreased 16.9% year over year. The figure lagged the Zacks Consensus Estimate by 1.3%.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major concern.
Vishay’s book-to-bill ratio was 0.86 at the end of the second 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 $179.5 million (24.2% of the total revenues), down 19.3% year over year. The book-to-bill was 0.87.
Inductors: The product line generated revenues of $94.1 million (12.7% of the total revenues), which increased 5.5% on a year-over-year basis. The book-to-bill was 0.97.
MOSFET: The product line generated revenues of $155.1 million (20.9% of the total revenues), decreasing 25.2% year over year. The book-to-bill was 0.79.
Capacitors: The product line generated revenues of $113.4 million (15.3% of the total revenues), down 15.3% year over year. The book-to-bill was 0.87.
Diodes: The segment generated revenues of $146.3 million (19.7% of the total revenues), down 16.3% from the year-ago quarter. The book-to-bill was 0.85.
Optoelectronics: The product line generated revenues of $53 million (7.2% of the total revenues) in the reported quarter. The figure was down 17.7% from the year-ago quarter. The book-to-bill was 0.82.
Operating Details
In the second quarter of 2024, the gross margin was 22%, contracting 690 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $124.95 million, increasing by 1.7% year over year. As a percentage of total revenues, the figure expanded 310 bps from the year-ago quarter to 16.9%.
The operating margin contracted 1000 bps on a year-over-year basis to 5.1%.
Balance Sheet & Cash Flows
As of Jun 29, 2024, cash and cash equivalents were $672.73 million, down from $ 796.5 million as of Mar 30, 2024. Short-term investments were $15.32 million, down from $37.4 million at the end of the prior quarter.
Long-term debt was $820.6 million at the end of second-quarter 2024 compared with $819.4 million at the end of first-quarter 2024.
The company used $24.73 million in cash from operations in the reported quarter compared with $80.2 million generated in the previous quarter.
In the second quarter, capital expenditures were $62.6 million. Also, free cash outflow was $86.8 million.
Guidance
For the third quarter of 2024, Vishay expects total revenues of $745 million (+/- $20 million). The Zacks Consensus Estimate for the same is pegged at $768.1 million.
VSH anticipates a third-quarter gross margin of 21% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Badger Meter (BMI - Free Report) , Arista Networks (ANET - Free Report) , and Apple (AAPL - Free Report) . While Badger Meter and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Apple carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Badger Meter shares have gained 32.7% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.92%.
Arista Networks shares have gained 41.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 17.20%.
Apple shares have gained 16.4% in the year-to-date period. The long-term earnings growth rate for AAPL is currently projected at 12.69%.