Vishay Intertechnology, Inc. VSH delivered first-quarter 2024 earnings of 22 cents per share, surpassing the Zacks Consensus Estimate by 10%. The figure fell 72% year over year.
Revenues of $746.3 million beat the Zacks Consensus Estimate of $733 million. However, it declined 14.3% year over year.
Weakening momentum across industrial and automotive end markets was concerning.
Softness in MOSFETs, diodes, optoelectronics, resistor and capacitor product lines was a major negative.
Vishay’s book-to-bill ratio was 0.82 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 $188.2 million (25.2% of the total revenues), down 15.6% year over year. The figure beat the Zacks Consensus Estimate of $182 million. The book-to-bill was 0.79.
Inductors: The product line generated revenues of $88.7 million (11.9% of the total revenues), which increased 10.5% on a year-over-year basis. The figure beat the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.96.
MOSFET: The product line generated revenues of $153.2 million (20.5% of the total revenues), decreasing 22.7% year over year. The figure missed the Zacks Consensus Estimate of $168 million. The book-to-bill was 0.68.
Capacitors: The product line generated revenues of $117.9 million (15.8% of the total revenues), down 11.6% year over year. The figure surpassed the Zacks Consensus Estimate of $109 million. The book-to-bill was 1.03.
Diodes: The segment generated revenues of $149.1 million (20% of the total revenues), down 15.1% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $143 million. The book-to-bill was 0.58.
Optoelectronics: The product line generated revenues of $49.2 million (6.6% of the total revenues) in the reported quarter. The figure beat the Zacks Consensus Estimate of $48.8 million. The figure was also down 18.5% from the year-ago quarter. The book-to-bill was 0.89.
Operating Details
In first-quarter 2024, the gross margin was 22.8%, contracting 920 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $127.7 million, increasing 6.3% year over year. As a percentage of total revenues, the figure expanded 330 bps from the year-ago quarter to 17.1%.
The operating margin contracted to 5.7% from 18.2% in the year-ago quarter.
Balance Sheet & Cash Flows
As of Mar 30, 2024, cash and cash equivalents were $796.5 million, down from $972.7 million as of Dec 31, 2023. Short-term investments were $37.4 million, up from $35.8 million at the end of the prior quarter.
The long-term debt was $819.4 million at the end of first-quarter 2024 compared with $818.2 million at the end of fourth-quarter 2023.
The company generated $80.2 million in cash from operations in the reported quarter, up from $6.3 million in the previous quarter.
In the fourth quarter, capital expenditure was $53.1 million. Also, the free cash flow was $27.9 million.
Guidance
For second-quarter 2024, Vishay expects total revenues of $750 million (+/- $20 million). The Zacks Consensus Estimate for the same is pegged at $756.85 million.
VSH anticipates a gross margin of 21.7% (+/-50 bps).
Zacks Rank & Stocks to Consider
Vishay currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Akoustis Technologies AKTS, NVIDIA NVDA and Intrusion INTZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akoustis Technologies’ shares have declined 31.6% year to date. AKTS is scheduled to release third-quarter fiscal 2024 results on May 13.
NVIDIA has surged 82.6% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.
Intrusion’s shares have declined 69.6% year to date. INTZ is set to report first-quarter 2024 results on May 14.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH) : Free Stock Analysis Report
Intrusion Inc. (INTZ) : Free Stock Analysis Report
Akoustis Technologies, Inc. (AKTS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
