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Q3 Earnings Preview for Vishay Intertechnology (NYSE:VSH)

in EARNINGS/INVESTING IDEAS by

Vishay Intertechnology, Inc. (NYSE:VSH) is scheduled to report Q3 earnings results before markets open for trading on November 3, 2020.

The company is expected to report earnings of $0.23/share on revenue of $624.8 million. The consensus earnings per share (EPS) of $0.23/share is based on a poll of 7 analysts and represents a decline in eps of −11.5% over the same quarter last year, when the company reported earnings of $0.26/share.

The revenue forecast of $624.8 million based on a poll of 7 analysts implies a year-over-year (YoY) decline in revenue of −0.6%. Last year the company reported $628.3 million in revenue for the quarter.

Expected to report EPS contraction of −11.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $624.82 $628.33 −0.6%
EPS $0.23 $0.26 −11.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from Vishay Intertechnology, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.08 $0.18 113.8% Beat
Q1, 2020 $0.15 $0.21 41.9% Beat
Q4, 2019 $0.19 $0.13 −30.8% Missed
Q3, 2019 $0.24 $0.26 8.7% Beat
Q2, 2019 $0.35 $0.36 3.2% Beat
Q1, 2019 $0.51 $0.51 0.6% Beat
Q4, 2018 $0.52 $0.58 12.4% Beat
Q3, 2018 $0.53 $0.60 13.0% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 4, 2020, the stock price reacted by increasing 6.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $16.05 $17.02 6.0% Increase
May 12, 2020 $16.38 $14.13 −13.7% Decline
February 4, 2020 $20.26 $21.05 3.9% Increase
October 29, 2019 $18.84 $20.30 7.7% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.86, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.86 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Vishay Intertechnology, Inc. is currently trading at $16.26/share, down −3.8% for the day. The company is trading at approximately 69.8% of its 52-week high of $23.25/share. The company’s stock price is down −4.5% since the last earnings report and down −6.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:VSH Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 24.48 and a forward P/E multiple of 20.16.

Vishay Intertechnology, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.57. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date July 4, 2020
Stock Price (Current) $16.26
P/E Ratio 24.5x
P/E Ratio (Fwd) 20.2x
PEG Ratio −0.4
Total Debt / Total Capital 18.2%
Levered Free Cash Flow $150.2 million
EV / EBITDA 6.2x

Finbox

Vishay Intertechnology, Inc. is a mid-cap stock with a market capitalization of $2.445 billion and a total enterprise value of $2.236 billion. The company operates in the Information Technology sector and the Electronic Equipment, Instruments & Components industry.

Vishay Intertechnology, Inc. manufactures and supplies discrete semiconductors and passive components in the United States, Europe, Asia, and internationally. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment offers standard and customer specific optoelectronic components, such as infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, 7-segment displays, and IR data transceiver modules. The Resistors segment provides film, wirewound, power metal strip, power metal plate, crowbar and steel blade, variable, RF and microwave, high voltage, and non-linear resistors, as well as battery management shunts, thermo fuses, chip fuses, pyrotechnic initiators/igniters, networks/arrays, dividers, and temperature sensors. The Inductors segment offers inductors, transformers, magnetics, and connectors. The Capacitors segment offers tantalum, ceramic, film, power, heavy-current, aluminum electrolytic capacitors, and energy storage capacitors. The company’s semiconductor components are used for power control, power conversion, power management, signal switching, signal routing, signal blocking, signal amplification, two-way data transfer, one-way remote control, and circuit isolation functions; and passive components are used to restrict current flow, suppress voltage increases, store and discharge energy, control alternating current and voltage, filter out unwanted electrical signals, and other functions.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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