Vishay (VSH) Q1 Earnings, Revenues Surpass Estimates

Zacks Equity Research
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Vishay Intertechnology, Inc. VSH reported first-quarter 2022 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate by 22.4%. The bottom line surged 54% year over year and 15% sequentially.

Revenues of $853.8 million increased 11.7% year over year and 1.3% from the previous quarter’s level. Further, the figure surpassed the Zacks Consensus Estimate by 1.2%.

The strong performance of resistors, diodes, MOSFETs, capacitors and opto product lines drove year-over-year revenue growth in the reported quarter.

Vishay’s book-to-bill ratio was 1.14 at the end of the first quarter.

Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise

Vishay Intertechnology, Inc. Price, Consensus and EPS Surprise
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 $207 million (24% of total revenues), up 10.9% year over year. The book-to-bill ratio for the product line was 1.24 in the reported quarter.

Inductors: The product line generated revenues of $82.8 million (10% of total revenues), which decreased 0.8% on a year-over-year basis. The book-to-bill ratio for the product line was 1.14 at the end of the reported quarter.

MOSFETs: The product line generated revenues of $172.7 million (20% of total revenues), improving 12.7% year over year. The book-to-bill ratio for the product line was 1.28 at the end of the reported quarter.

Capacitors: The product line generated revenues of $128 million (15% of total revenues), up 20.3% year over year. The book-to-bill ratio for the product line was 1.02 in the reported quarter.

Diodes: The segment generated revenues of $182.3 million (21% of total revenues), up 16% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 1.16 in the quarter under review.

Optoelectronics: The product line generated revenues of $81 million (10% of the top line) in the reported quarter. The figure was up 4.2% from the year-ago quarter’s level. The book-to-bill ratio for the product line was 0.78 for the period.

End-Market Details

Industrial: The industrial market generated $337.4 million (40% of total revenues) in the reported quarter, up 25% year over year.

Automotive: The automotive market generated $259.5 million (30% of total revenues) with a marginal increment of 1% from the prior-year period’s level.

Telecommunications: The telecommunications market generated $31 million (4% of total revenues), increasing 25% from the same quarter’s level last year.

Computing: The computing market generated $67.9 million (8% of total revenues), up 13% year over year.

Consumer Products: The consumer products market generated $38.7 million (4% of total revenues), decreasing 5% from the year-ago period’s level.

Power Supplies: The power supplies market generated $40.3 million (5% of total revenues), up 14% year over year.

Military & Aerospace: The military & aerospace market generated $46.5 million (5% of total revenues) and rose 12% from the same quarter last year.

Medical: The medical market generated $32.5 million (4% of total revenues), declining 8% on a year-over-year basis.

Regional Details

Vishay generated $344 million revenues from Asia (40% of total revenues), which increased 6.7% year over year. Revenues generated from Europe increased 8.1% from the year-ago quarter’s level to $289.98 million (34% of total revenues). VSH generated $219.8 million (26% of total revenues) from Americas, up 26.4% year over year.

Operating Results

In first-quarter 2022 the gross margin was 30.3%, expanding 380 basis points (bps) on a year-over-year basis.

Selling, general and administrative (SG&A) expenses were $112.9 million, increasing 6.8% year over year. As a percentage of total revenues, SG&A expenses contracted 60 bps from the year-ago quarter’s level to 13.2%.

The operating margin expanded 440 bps on a year-over-year basis to 17.1%.

Balance Sheet & Cash Flow

As of Mar 31, 2022, cash and cash equivalents were $789.2 million, up from $774.1 million as of Dec 31, 2021. Short-term investments were $96.6 million, down from $146.7 million in the previous quarter. Inventories were $602.9 million, up from $536.5 million in the prior quarter.

Long-term debt was $456.5 million at the end of the first quarter of 2022 compared with $455.7 million at the end of the fourth quarter of 2021.

In the reported quarter, Vishay generated $33.6 million of cash from operations, down from $146.7 million in the previous quarter.

VSH’s free cash flow in the first quarter was ($2.3) million against $46.5 million in the prior quarter.

Vishay returned $24.4 million to its stockholders, of which $14.5 million was paid out as dividends while $9.9 million was stock repurchased.

Guidance

For second-quarter 2022, Vishay expects total revenues of $830-$870 million. The Zacks Consensus Estimate for the same is pegged at $879.8 million.

VSH anticipates a second-quarter gross margin of 28.1% (+/-50 bps).

Zacks Rank & Other Stocks to Consider

Vishay currently has a Zacks Rank #2 (Buy). Investors interested in the broader technology sector can consider stocks like Jabil JBL, Analog Devices ADI, and Broadcom AVGO. While Jabil currently sports a Zacks Rank #1 (Strong Buy), Analog Devices and Broadcom carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jabil has gained 13.4% over a year. The long-term earnings growth rate for JBL is currently projected at 12%.

Analog Devices has gained 4.6% over a year. The long-term earnings growth rate for ADI is currently projected at 12.3%.

Broadcom has gained 30.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 15.6%.


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