Vishay Intertechnology (VSH) Beats On Q2 Earnings & Revenues
Zacks Investment Research | Oct 30, 2018 11:09PM ET
Vishay Intertechnology, Inc. (NYSE:VSH) delivered third-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate by 6 cents. The figure also surged 42.8% on a year-over-year basis and 11.1% sequentially.
Revenues increased 15.2% year over year and 2.6% on a sequential basis to $780.97 million. The figure also comfortably outpaced the Zacks Consensus Estimate of $777.65 million.
The company’s strong performance in automotive and industrial markets drove year-over-year growth. Moreover, strengthening demand conditions in Americas and Europe aided the top line in the reported quarter.
Additionally, the book-to-bill ratio of the company was 0.95 at the end of the reported quarter. Further, expanding manufacturing capacities across all product segments contributed well to the company’s quarterly results.
However, shortage of supply still remains a major concern in the healthy demand market.
Notably, shares of Vishay Intertechnology have lost 12.9% on a year-to-date basis compared with the Vishay Intertechnology, Inc. Quote
Operating Details
In third-quarter 2018, gross margin came in at 30.3%, expanding 230 basis points (bps) on a year-over-year basis. This is attributable to rising selling prices during the reported quarter. Further, strong performance of resistors & inductors, diodes, capacitors and opto product lines led to margin expansion.
Selling, general and administrative expenses were $98.2 million, increasing 7.3% year over year. However, as a percentage of total revenues, the figure contracted 90 bps from the year-ago quarter.
Per the company, operating margin came in at 17.7%, expanding 360 bps from the year-ago quarter. Adjusted EBITDA margin was 22.4%, expanding 240 bps year over year.
Balance Sheet & Cash Flows
As of Sep 29, 2018, cash and cash equivalents were $928.1 million, declining from $1 billion as of Jun 30, 2018. Short-term investments were $135 million, down from $142.7 million in the previous quarter. Inventories were $500.3 million, up 4.2% sequentially.
In the third quarter, the company generated $70.7 million of cash from operations against $8.7 million of cash that was used in operations in the last reported quarter.
The company’s free cash flow in the third quarter came in $21.05 million.
Guidance
For fourth-quarter 2018, Vishay Intertechnology expects total revenues to be in the range of $745 to $785 million. The Zacks Consensus Estimate for revenues is pegged at $774.15 million.
Further, the company anticipates gross margin to lie between the range of 28% and 29.5%.
Zacks Rank and Other Stocks to Consider
Vishay Intertechnology flaunts a Zacks Rank #2 (Buy).
Get The News You Want
Some other top-ranked stocks in the broader technology sector are Upland Software (NASDAQ:UPLD) , Ringcentral (NYSE:RNG) and AMETEK (NYSE:AME) . While Upland Software and Ringcentral sport a Zacks Rank #1 (Strong Buy), AMETEK carries a Zacks Rank #2. You can see Zacks Investment Research