Vishay Intertechnology (NYSE:VSH) Announces Earnings Results

Key Points

• Vishay exceeded second-quarter expectations: Adjusted EPS was $0.19 versus the $0.15 consensus, while revenue rose 16.6% year over year to $918.6 million, surpassing estimates.
• Demand and the near-term outlook improved: The book-to-bill ratio reached 1.32, backlog increased 18% to approximately $1.9 billion, and management raised third-quarter revenue guidance to $945 million–$975 million amid strength in industrial, AI, automotive, aerospace and defense markets.
• Investors remain concerned about cash flow and dilution: Heavy capacity-expansion spending is expected to pressure free cash flow, while a recent $830 million equity offering increased the share count; these concerns contributed to the stock’s post-earnings selloff despite the strong results.

Vishay Intertechnology (NYSE:VSH - Get Free Report) issued its earnings results on Wednesday. The semiconductor company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.15 by $0.04, FiscalAI reports. The company had revenue of $918.58 million during the quarter, compared to the consensus estimate of $897.03 million. Vishay Intertechnology had a return on equity of 0.22% and a net margin of 0.07%.The firm's revenue for the quarter was up 16.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.07) EPS.

Here are the key takeaways from Vishay Intertechnology's conference call:

• Strong Q2 performance: Adjusted revenue rose 9.5% sequentially and 21% year over year to $919 million, exceeding guidance, while book-to-bill reached 1.32 and backlog increased 18% to $1.9 billion.
• Demand is broadening across industrial, AI, automotive, aerospace and defense, healthcare, and communications, with rising customer counts, market-share gains, and increasing demand for Western supply. AI-related orders and aerospace-defense programs are driving particularly strong bookings.
• Profitability improved as higher volumes, pricing, channel management, and cost initiatives lifted adjusted gross margin to 22.6% and adjusted operating margin to 5.8%; Vishay now expects to reach its 24% quarterly gross-margin goal in Q3, ahead of schedule.
• The company raised its Q3 outlook to $945 million–$975 million of revenue and expects continued capacity expansion, including foundry support for AI products, polymer capacitor investments, and progress toward production at its German 12-inch fab in mid-2027.
• Vishay expects negative free cash flow in 2026 because of heavy capacity-expansion spending, while its recent $830 million equity offering increased the share count and diluted existing shareholders; the company also continues to face elevated tax rates and rising metals, materials, and logistics costs.

Vishay Intertechnology Price Performance

Shares of NYSE:VSH traded down $4.30 during midday trading on Wednesday, hitting $34.55. The stock had a trading volume of 6,521,204 shares, compared to its average volume of 4,601,823. The company's 50-day moving average price is $49.24 and its 200-day moving average price is $32.44. The company has a market capitalization of $4.70 billion, a P/E ratio of 3,445.50 and a beta of 1.81. Vishay Intertechnology has a fifty-two week low of $11.77 and a fifty-two week high of $69.47. The company has a quick ratio of 1.53, a current ratio of 2.64 and a debt-to-equity ratio of 0.47.

Vishay Intertechnology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 29th. Investors of record on Thursday, June 18th were given a $0.10 dividend. The ex-dividend date was Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.2%. Vishay Intertechnology's dividend payout ratio (DPR) is presently 4,000.00%.

Institutional Trading of Vishay Intertechnology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quarry LP bought a new stake in Vishay Intertechnology during the third quarter valued at $39,000. Empowered Funds LLC acquired a new stake in Vishay Intertechnology in the 4th quarter valued at $57,000. Amundi bought a new stake in Vishay Intertechnology during the 4th quarter valued at $164,000. Entropy Technologies LP acquired a new position in Vishay Intertechnology during the third quarter worth $182,000. Finally, CIBC Bancorp USA Inc. bought a new position in shares of Vishay Intertechnology in the third quarter valued at $198,000. 93.66% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages recently commented on VSH. Zacks Research lowered shares of Vishay Intertechnology from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Bank of America lifted their price target on Vishay Intertechnology from $18.00 to $28.00 and gave the stock an "underperform" rating in a report on Thursday, May 14th. Needham & Company LLC began coverage on Vishay Intertechnology in a report on Tuesday. They issued a "buy" rating and a $45.00 price objective on the stock. Raymond James Financial began coverage on Vishay Intertechnology in a research report on Tuesday. They set an "outperform" rating and a $40.00 price objective on the stock. Finally, Weiss Ratings raised Vishay Intertechnology from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $33.25.

Vishay Intertechnology News Summary

Here are the key news stories impacting Vishay Intertechnology this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Vishay reported adjusted EPS of $0.19, compared with the $0.15 analyst consensus and a loss of $0.07 in the prior-year quarter. Revenue reached approximately $918.6 million, above expectations of about $897 million, while sales increased 16.6% year over year. Vishay earnings report
• Positive Sentiment: Demand indicators and the near-term outlook improved. Backlog reportedly rose to about $1.88 billion, with a 1.32 book-to-bill ratio. Management cited stronger pricing and improving demand in industrial, artificial intelligence, automotive, aerospace, and defense markets. Third-quarter revenue guidance of $945 million to $975 million also exceeded the approximately $925.6 million consensus estimate. Vishay second-quarter results
• Positive Sentiment: Analyst coverage was supportive. Needham initiated coverage with a Buy rating and a $45 price target, while Raymond James began coverage with an Outperform rating and a $40 target. Needham analyst coverage
• Neutral Sentiment: Vishay introduced TSOP15300 infrared receiver modules for consumer electronics. The product expands its portfolio, but the financial impact is unlikely to materially affect the stock immediately. TSOP15300 product announcement
• Negative Sentiment: Capital-structure and cash-flow concerns likely drove the selloff. Vishay’s July equity offering added approximately 17.25 million shares, raising dilution concerns. The company also reported negative year-to-date free cash flow as it invests heavily in capacity, making investors question how quickly stronger demand will translate into cash generation.
• Negative Sentiment: The earnings beat may have been largely anticipated after VSH’s earlier rally. Consequently, investors appear to be selling the stock on the gap between strong operating results and concerns over dilution, elevated expectations, and near-term cash requirements.

Vishay Intertechnology Company Profile

Vishay Intertechnology, Inc is a global manufacturer of discrete semiconductors and passive electronic components, serving a wide range of industries including industrial, automotive, computing, consumer electronics, telecommunications, medical, and military/aerospace markets. The company's portfolio encompasses resistors, capacitors, inductors, sensors, diodes, rectifiers, MOSFETs and a variety of integrated circuit solutions. Vishay's components are used in power management, signal conditioning, circuit protection and sensing applications, supporting both standard and custom designs for original equipment manufacturers worldwide.

Originally founded in 1962 by Dr.

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