Vishay Intertechnology Shares Are Trading Lower Despite Q1 Earnings Beat, Robust Q2 Guidance

Vishay Intertechnology Inc VSH reported first-quarter FY21 revenue growth of 24.8% year-on-year to $764.6 million, beating analyst consensus of $753.42 million.
The gross margin expanded 250 basis points to 26.5%, while the operating margin expanded 500 basis points to 12.7%.
Adjusted EBITDA margin expanded 260 basis points to 17.4%.
Adjusted net income rose 118% to $67 million, with adjusted EPS of $0.46, beating the analyst consensus of $0.44.
The company held $643.8 million in cash and equivalents, and it generated $57.3 million in operating cash flow.
Quarterly orders and backlog reached all-time highs in Q1, CEO Dr. Gerald Paul said.
Q1 sales in Vishay's products from distribution to end customers rose 21% Q/Q, and inventories of the products at distribution were reduced by $34 million, Paul added.
Paul expects a relatively higher growth rate in the upcoming years based on accelerated electrification, such as factory automation, electric vehicles, and 5G infrastructure.
Guidance: Q2 revenue guidance lies between $790 million and $830 million, beating the analyst consensus of $770.65 million. Gross margin guidance is at 27.3%.
Price action: VSH shares traded lower by 2.62% at $23.46 on the last check Tuesday.

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