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VSH Q4 Earnings Miss: Will Weak Results Drag the Stock Down?

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Vishay Intertechnology, Inc. (VSH - Free Report) 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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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 lower-than-expected fourth-quarter performance is unlikely to boost VSH’s stock price, which already declined 15.3% in the past year and has underperformed the Zacks Computer and Technology sector and the S&P 500 index’s return of 25.2% and 23.5%, respectively.

VSH’s Q4 Details

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.

Vishay Intertechnology’s Balance Sheet & Cash Flow

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.

VSH Offers Q1 Guidance

For the first quarter, Vishay Intertechnology expects revenues to be $710 million (+/- $20 million).

The Zacks Consensus Estimate for revenues is pegged at $705.6 million, suggesting a year-over-year fall of 5.5%.

Operating margin is anticipated to be 19.0% (+/- 50 basis points).

The Zacks Consensus Estimate for earnings is pegged at 2 cents per share, indicating a year-over-year decline of 91%.

Zacks Rank and Stocks to Consider

Currently, VSH carries a Zacks Rank #3 (Hold).

Bill Holdings (BILL - Free Report) , Celestica (CLS - Free Report) and CrowdStrike (CRWD - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While BILL and CLS sport Zacks Rank #1 (Strong Buy) each, CRWD carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for BILL’s 2025 earnings has been revised upward by a penny to $1.77 per share over the past 60 days, indicating a 13% year-over-year increase. BILL shares have gained 26.2% in the past year.

The consensus mark for CLS’ 2025 earnings has been revised upward by 33 cents to $4.75 per share over the past seven days, indicating a 22.4% year-over-year increase. CLS shares have risen 257.3% in the past year.

The consensus mark for CRWD’s 2025 earnings has been revised upward by a penny to $3.74 per share over the past 30 days, indicating a 21% year-over-year increase. CRWD shares have gained 34.6% in the past year.


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