Vishay Intertechnology Reports Stable Revenue Amid Inventory Challenges in Q3 2024

Vishay Intertechnology

MALVERN, PAVishay Intertechnology, Inc. (NYSE: VSH) released its financial results for the third quarter of 2024, reporting steady revenues amidst ongoing industry challenges. The company posted revenues of $735.4 million, maintaining consistency for the third consecutive quarter despite the impact of inventory de-stocking and challenging economic conditions.

The gross margin for the quarter stood at 20.5%, though it included a negative impact of roughly 150 basis points due to the addition of Newport. The company reported a GAAP loss per share of ($0.14), while the adjusted earnings per share were $0.08.

The book-to-bill ratio was recorded at 0.88, indicating a slower pace of orders compared to shipments. This ratio was 0.79 for semiconductors and 0.97 for passive components, reflecting varied demand across product lines. The backlog at the end of the quarter spanned 4.4 months.

CEO Joel Smejkal addressed the current market conditions, stating, “For the third consecutive quarter this year, revenue has held fairly constant, reflecting a prolonged period of inventory de-stocking as the pace of consumption by industrial customers remains slow, backlogs are pushed out and macroeconomic conditions in Europe worsen.” He emphasized that while the industry is in a downcycle, Vishay is making strategic adjustments to manage costs and is preparing to leverage future growth in sectors like e-mobility and sustainability.

Looking ahead to the fourth quarter, Vishay anticipates revenues in the range of $720 million, with a gross profit margin expected to be around 20.0%, factoring in a negative impact of an additional 175 to 200 basis points from Newport.

Vishay’s proactive measures aim to position the company for robust participation in the next industry up-cycle, focusing on enhancing revenue growth and profitability as the market conditions evolve.

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