Vishay Precision Group, Inc. (NYSE:VPG) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 6.3% to hit US$71m. Vishay Precision Group also reported a statutory profit of US$0.36, which was an impressive 29% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vishay Precision Group after the latest results.
Taking into account the latest results, the current consensus from Vishay Precision Group's three analysts is for revenues of US$285.2m in 2021, which would reflect a modest 4.6% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 65% to US$1.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$285.2m and earnings per share (EPS) of US$1.51 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$41.00, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Vishay Precision Group, with the most bullish analyst valuing it at US$43.00 and the most bearish at US$37.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Vishay Precision Group's growth to accelerate, with the forecast 6.2% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Vishay Precision Group is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Vishay Precision Group's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$41.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Vishay Precision Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vishay Precision Group going out to 2022, and you can see them free on our platform here..
We also provide an overview of the Vishay Precision Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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