Vishay Intertechnology Q2 Results Surpass Street Expectations

Vishay Intertechnology Inc VSH reported second-quarter FY23 net revenue growth of 3.3% Y/Y to $892.11 million, beating the consensus of $879.69 million.

Gross margin contracted 140 bps Y/Y to 28.9%. Operating margin contracted 238 bps Y/Y to 15.1%.

Adjusted EBITDA declined 10.5% Y/Y to $177.97 million, and the margin contracted by 310 bps to 19.9%.

Adjusted EPS was $0.68 beating the consensus of $0.63

Vishay held ~$1.1 billion in cash and equivalents. Net cash provided by operating activities for six months ended July 1, 2023, totaled $237.13 million, compared to $108.31 million a year ago.

Total inventories as of July 1, 2023, totaled $660.04 million versus $618.88 million as of Dec. 31, 2022.

2Q23 book-to-bill was 0.69; Backlog at quarter end was 6.4 months.

"We are committed to putting significant amount of capital to work between 2023 and 2025 to add incremental capacity to support our highest growth and margin product lines and to introducing Vishay solutions that more fully leverage our broad portfolio of semiconductors and passives,” Joel Smejkal, President and CEO stated.

3Q23 Outlook: Vishay sees revenue of $840 million-$880 million compared to the analyst consensus of $881.47 million.

The company sees a gross margin of 27.7% (+/- 50 basis points).

Price Action: VSH shares are trading flat at $26.77 on the last check Wednesday.