A month has gone by since the last earnings report for Vishay Intertechnology (VSH). Shares have added about 2.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Vishay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Vishay Q3 Earnings and Revenues Miss Expectations, Decline Y/Y

Vishay reported third-quarter 2024 adjusted earnings of 8 cents per share, missing the Zacks Consensus Estimate by 46.7%. The figure declined 86.7% year over year.

VSH's third-quarter revenues of $735.4 million missed the consensus mark by 1.49%.

The figure fell 13.8% year over year, which demonstrated a prolonged inventory correction process, as industrial consumer consumption continues to be sluggish, followed by a broader macro weakness in Europe. The weak bottom-line results were due to unexpectedly high operational expenses.

VSH's Q3 Details

VSH's poor top-line performance was negatively impacted by softness across its segments (MOSFET, Diodes, Optoelectronics, Resistors, Inductors and Capacitors).

Revenues from MOSFET (20% of total revenues) were $147.1 million, down 28.2% year over year. The book-to-bill was 0.84.

Third-quarter revenues from Diodes (19.7% of total revenues) were $145.2 million, down 17.9% year over year. The book-to-bill was 0.74.

Revenues from Optoelectronics (8.6% of total revenues) in the third quarter were $63.2 million, down 1.9% year over year. The book-to-bill was 0.77.

Revenues from Resistors (24.6% of total revenues) were $180.9 million, down 9.5% year over year. The book-to-bill was 0.95.

Revenues from Inductors (12.3% of total revenues) were $90.3 million, up 0.4% year over year. The book-to-bill was 0.83.

Revenues from Capacitors (14.8% of total revenues) were $108.7 million, down 7.6% year over year. The book-to-bill was 1.10.

VSH's third-quarter adjusted EBITDA was $71.5 million, down 55.2% year over year. The adjusted EBITDA margin contracted 900 basis points (bps) on a year-over-year basis to 9.7%.

Adjusted operating margin was 3% in the reported quarter.

Vishay Intertechnology's Balance Sheet & Cash Flow

As of Sept. 30, 2024, VSH's cash and cash equivalents were $643.8 million compared with $672.7 million as of June 30.

Long-term debt was $820.8 million as of Sept. 30, slightly higher than $820.6 million as of June 30.

Net cash from operating activities was $106 million, while free cash flow was $8.8 million.

VSH Offers Dim Q4 Guidance

For the fourth quarter, Vishay Intertechnology expects revenues to be $720 million (+/- $20 million). Operating margin is anticipated to be 20.0% (+/- 50 bps).

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -56.25% due to these changes.

VGM Scores

Currently, Vishay has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Vishay has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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Vishay Intertechnology, Inc. (VSH) : Free Stock Analysis Report

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.