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What's in Store for Vishay Intertechnology's (VSH) Q1 Earnings?

Zacks Equity Research

Vishay Intertechnology, Inc. VSH is slated to report first-quarter 2019 results on May 9.

The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 11.36%.

Past-Quarter Results

In the last reported quarter, Vishay delivered a positive earnings surprise of 13.73%. Earnings of 58 cents per share surged 56.7% on a year-over-year basis.

Revenues increased 15.2% on a year-over-year basis to $775.9 million. Notably, the figure came ahead of the Zacks Consensus Estimate of $761 million.

The company’s strong performance in automotive and industrial markets drove year-over-year growth. Moreover, strengthening manufacturing capacities of the company contributed to the results.

Q1 Expectations

For first-quarter 2019, Vishay expects total revenues to be in the range of $730-$770 million. The Zacks Consensus Estimate for revenues is pegged at $750 million.

Further, the Zacks Consensus Estimate for earnings is projected at 50 cents per share.

Let’s see how things are shaping up prior to this quarter.

Vishay Intertechnology, Inc. Price and EPS Surprise

Vishay Intertechnology, Inc. Price and EPS Surprise | Vishay Intertechnology, Inc. Quote

Portfolio Strength: A Key Catalyst

Vishay’s strong focus toward innovation and expansion of its product portfolio remains a major positive. Moreover, its robust product lines are anticipated to act as key catalysts in the to-be-reported quarter.

The company’s well-performing resistors and inductors are likely to continue its solid performance in the automobile, military, industrial and medical markets in the quarter under review. Further, benefits from UltraSource buyout are continuously aiding Vishay’s position in the thin film networks space.

Further, robust diodes are also aiding performance in the industrial and automotive markets. Moreover, growing proliferation of MOSFETS in the automotive applications remains a major positive for the company’s position in automotive space.

Additionally, the company’s opto product offerings which include sensors, couplers, infrared emitters and receivers are also gaining traction in automotive applications space. These factors are likely to aid the upcoming quarter’s results.

Furthermore, with capacitors, the company’s hold in the areas of power transmission and electro cars continues to strengthen.

We believe Vishay’s robust product portfolio is expected to continue aiding the top line in the soon-to-be-reported quarter.

Other Factors to Consider

Vishay continues to witness strong demand environment and also normalization in the supply constraint.

Further, favourable macro-economic conditions in Americas and rising distribution inventories in this region remain a major positive for its to-be-reported quarterly results.

However, imposition of tariffs as a result of ongoing trade war between the United States and China remains a concern for Vishay’s industrial business in China.

Further, declining PC shipment which is making computing market weak, remains a major woe. Moreover, sluggish smartphone market does not bode well for the company’s position in the telecom space.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Vishay has a Zacks Rank #3 but an Earnings ESP of 0.00%, which makes the surprise prediction difficult.

Stocks That Warrant a Look

Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming release.

MongoDB, Inc. MDB has an Earnings ESP of +0.69% and a Zacks Rank 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. A has an Earnings ESP of +2.10% and a Zacks Rank #2.

TripAdvisor, Inc. TRIP has an Earnings ESP of +15.51% and a Zacks Rank #3.

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