MALVERN, PA — Vishay Intertechnology, Inc. (NYSE: VSH) announced its financial results for the fiscal second quarter ended June 29, 2024, posting stable revenue but noting industry challenges and strategic adjustments.
Key Financials
- Revenue: $741.2 million
- Gross Margin: 22.0%, impacted by 170 basis points due to Newport addition
- Earnings Per Share (EPS): $0.17
- Book-to-Bill Ratio: 0.86 overall, 0.82 for semiconductors, 0.90 for passive components
- Backlog: 4.6 months at quarter-end
“During the second quarter, we executed well on our Vishay 3.0 strategic plan, deepening our customer engagements supported by capacity that has landed and that we will continue to expand, and advancing our silicon carbide strategy as we prepare for the megatrends in sustainability and e-mobility,” said Joel Smejkal, President and CEO.
Smejkal added, “Revenue, including a full quarter of Newport, was flat quarter over quarter, primarily reflecting schedule agreement adjustments by automotive Tier 1 customers. At mid-year 2024, it is apparent that the industry recovery is taking longer than we had expected at the beginning of the year.”
Outlook and Strategic Adjustments
Vishay plans to adjust the timetable for its Itzehoe, Germany expansion project beyond 2024, while maintaining its capital investment plan of $2.6 billion between 2023 and 2028. For 2024, the company expects capital expenditures between $360 million to $390 million.
The company’s third-quarter 2024 outlook includes:
- Expected Revenue: $745 million +/- $20 million
- Gross Profit Margin: 21.0% +/- 50 basis points, including a negative impact of 175 to 200 basis points from the Newport addition.
Buy, Sell, or Hold?
Vishay’s stable revenue and strategic focus on sustainability and e-mobility are promising. However, the slow industry recovery and revised expansion timelines introduce caution. Given these factors, Vishay Intertechnology is a Hold. Investors should monitor industry recovery trends and the company’s execution of its strategic initiatives.
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