Vishay Intertechnology (VSH) Surpasses Q4 Earnings & Revenues
Zacks Investment Research | Feb 06, 2019 10:20PM ET
Vishay Intertechnology, Inc. (NYSE:VSH) delivered fourth-quarter 2018 adjusted earnings of 58 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents. The figure surged 56.7% year over year but declined 3.3% sequentially.
Revenues increased 15.2% on a year-over-year basis but decreased 0.6% on a sequential 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 well.
Further, increasing demand in almost all markets and solid momentum across all regions was a major positive.
Additionally, the book-to-bill ratio of the company was 0.94 at the end of the reported quarter.
Although supply has started to catch up with demand, supply shortage still remains a major concern in the healthy demand market. Further, imposition of U.S. tariffs is negatively impacting the company’s performance in the Chinese industrial market.
Notably, shares of Vishay Intertechnology have returned 20.6% over a year, underperforming the Vishay Intertechnology, Inc. Quote
Operating Details
In fourth-quarter 2018, gross margin came in at 28.3%, expanding 200 basis points (bps) on a year-over-year basis.
Selling, general and administrative expenses were $100.02 million, increasing 4.9% year over year. However, as a percentage of total revenues, the figure contracted 120 bps from the year-ago quarter.
Per the company, operating margin came in at 15.4%, expanding 410 bps from the year-ago quarter. Adjusted EBITDA margin was 20.1%, expanding 240 bps year over year.
Balance Sheet & Cash Flows
As of Dec 31, 2018, cash and cash equivalents were $686.03 million, declining from $928.1 million as of Sep 29, 2018. Short-term investments were $78.3 million, down from $135 million in the previous quarter. Inventories were $479.7 million, declining from $500.3 million in the previous quarter.
In the fourth quarter, the company generated $150 million of cash from operations, up from $70.7 million in the previous quarter.
The company’s free cash flow in the fourth quarter came in $93.2 million, significantly up from $21.05 million in the third quarter.
Guidance
For first-quarter 2019, Vishay Intertechnology expects total revenues to be in the range of $730 million to $770 million. The Zacks Consensus Estimate for revenues is pegged at $743 million.
Further, the company anticipates gross margin to lie between the range of 28% and 29%.
Zacks Rank and Stocks to Consider
Vishay Intertechnology carries a Zacks Rank #3 (Hold).
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