Vishay Expands IHLE Series to Strengthen Inductors Segment

Vishay Intertechnology VSH recently launched the Dale IHLE-4040DDEW-5A, expanding its IHLE series of low-profile, high-current inductors.
The device offers a 20 dB reduction in radiated noise interference and a 6 dB reduction in magnetic flux leakage when connected to the ground.
It also offers continuous high-temperature operation and improved operating and isolation voltage ratings.
The newly launched inductor is expected to gain solid momentum across entertainment/navigation systems, LED drivers and motors, automotive domain control units (DCU), and other noise-sensitive applications.
The IHLE-4040DDEW-5A launch has added strength to Vishay's Inductors product line.

Expanding Inductors Offerings Aid Prospects

Per a Mordor Intelligence report, the inductor market is likely to hit $11.01 billion in 2024 and reach $14.58 billion by 2029, witnessing a CAGR of 4.4% between 2024 and 2029. Vishay is well-poised to capitalize on this growth opportunity on the back of its expanding inductor offerings.
Vishay recently introduced IHDF-1300AE-1A, a new Automotive-Grade edge-wound inductor with a rated current of up to 72 A and saturation currents of up to 230 A. It is ideal for high-current, high-temperature automotive systems like EV and HEV chargers.
The company's partnership with Immersion Corporation to unveil a new series of IHPT solenoid-based haptic actuators remains noteworthy.
This partnership has helped Vishay to gain significant traction in automotive and commercial applications, particularly in human-machine interfaces like LCD touchscreens, touch panels, buttons and joysticks.

To Conclude

All the above-mentioned endeavors will continue aiding Vishay's Inductors segment, which is currently the key growth driver of the company.
In the first quarter of 2024, the Inductors segment generated revenues of $88.7 million, which increased 10.5% on a year-over-year basis, accounting for 11.9% of total revenues.
The strengthening Inductors segment will likely aid the overall financial performance of the company in the near term.
However, growing inventory adjustments, contracting lead times and a softening demand environment across industrial end markets remain major concerns for the company. Vishay's shares have lost 2.3% in the year-to-date period, underperforming the Zacks Computer & Technology sector's growth of 16.7%.
The Zacks Consensus Estimate for 2024 revenues is pegged at $3.1 billion, indicating a decline of 10% year over year.
The consensus mark for 2024 earnings is pegged at 87 cents per share, indicating a 64.3% decline from the year-ago figure. The figure has decreased by 21.9% in the past 30 days.

Zacks Rank & Stocks to Consider

Currently, Vishay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Badger Meter BMI and Dropbox DBX, each sporting a Zacks Rank #1 (Strong Buy) at present.
Arista Networks' shares have gained 25.4% in the year-to-date period. The long-term earnings growth rate for ANET is 15.68%.
Badger Meter's shares have gained 22.8% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 15.57%.
Shares of Dropbox have declined 25.7% in the year-to-date period. The long-term earnings growth rate for DBX is 11.44%.

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