Vishay Meets Q1 EPS Estimates, Revenue Tops Consensus

MALVERN, Pa. – Vishay Intertechnology, Inc. (NYSE:), a leading manufacturer of discrete semiconductors and passive electronic components, released its financial results for the first quarter ended March 30, 2024.

The company reported adjusted earnings per share (EPS) of $0.22, aligning with analyst predictions. Revenue for the quarter exceeded expectations at $746.3 million, surpassing the consensus estimate of $735.96 million and marking a decline from the previous year’s first quarter revenue of $871.046 million.

Despite the revenue surpassing analyst estimates, the company experienced a sequential decline of 5% from the fourth quarter of 2023, primarily due to semiconductor inventory adjustments and macro-economic uncertainties, particularly in Asia and Europe.

Joel Smejkal, President and CEO of Vishay, noted that the gross margin for the quarter was impacted by the addition of Newport, resulting in a 74-basis point decrease. Smejkal expressed optimism for recovery in the second half of the year, led by passive components, and emphasized the company’s strategic focus on capacity expansion, customer relationships, and advancing their silicon carbide strategy.

For the second quarter of 2024, Vishay anticipates revenues to be in the range of $750 million +/- $20 million, which includes the full quarter impact of the Newport acquisition. This guidance falls slightly below the analyst consensus of $759.5 million. The company also expects a gross profit margin in the range of 21.7% +/- 50 basis points, factoring in the negative impact from Newport.

Vishay’s stock movement was not specified, indicating that the market’s response to the earnings release may not have been significant enough to report a notable percentage change.

The company continues to execute on its strategic growth levers detailed at its Investor Day, with a focus on investing in capacity, deepening customer relationships, and advancing its silicon carbide strategy to prepare for the next upcycle in demand.

“As expected, first quarter revenue declined 5% sequentially primarily due to ongoing semiconductor inventory digestion and lingering macro-economic uncertainties, particularly in Asia and Europe,” Smejkal said. “Passive components revenue is stable to growing in Automotive with stronger growth in Aerospace/Defense.”

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