Vishay Precision Group (NYSE:VPG) Releases Earnings Results

Key Points

• Vishay Precision Group beat revenue expectations in the quarter, reporting $84.35 million in sales versus analysts’ estimate of $77.08 million, while EPS came in at $0.07.
• Q1 business momentum was strong, with revenue up 18% year over year and bookings rising 26% sequentially to $102.1 million, marking the company’s best book-to-bill ratio since 2022.
• Management highlighted rising demand from AI-related and advanced tech markets, including semiconductor equipment, data centers, fiber optics, defense, and early humanoid robotics, and unveiled a three-year operating model targeting faster growth and improved margins.

Vishay Precision Group (NYSE:VPG - Get Free Report) announced its quarterly earnings data on Tuesday. The scientific and technical instruments company reported $0.07 earnings per share (EPS) for the quarter, FiscalAI reports. Vishay Precision Group had a return on equity of 2.16% and a net margin of 1.72%.The firm had revenue of $84.35 million during the quarter, compared to analysts' expectations of $77.08 million.

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

• Q1 performance was strong, with revenue up 18% year over year to $84.4 million and bookings up 26% sequentially to $102.1 million, producing the company’s best book-to-bill since 2022.
• Sensor demand surged on AI-related applications, with bookings reaching a 15-quarter high and backlog at its highest level since Q1 2023, supported by semiconductor equipment, data centers, fiber optics, defense, and early humanoid robotics demand.
• VPG introduced a new three-year operating model targeting 8%-10% annual organic revenue growth, gross margin of 46.5%, and EBITDA margin of 18.5%-20.5%, while also planning more than $20 million of cost reductions and efficiency gains.
• Profitability remained modest in Q1, with adjusted operating margin at 1.9% and adjusted EBITDA margin at 7%, while adjusted free cash flow was negative due to higher working capital needs to support growth.
• Management stayed upbeat on humanoid robotics, saying Q1 revenue was about $600,000 and could more than double in Q2, while also raising its internal 2026 projection as customer production ramps appear increasingly likely in the second half of the year.

Vishay Precision Group Stock Performance

VPG stock traded up $16.28 during midday trading on Tuesday, hitting $82.88. 224,046 shares of the stock traded hands, compared to its average volume of 290,704. Vishay Precision Group has a 1-year low of $24.89 and a 1-year high of $87.88. The company has a debt-to-equity ratio of 0.06, a current ratio of 4.47 and a quick ratio of 2.97. The stock's fifty day simple moving average is $49.42 and its 200-day simple moving average is $43.57. The firm has a market cap of $1.10 billion, a P/E ratio of 204.25, a PEG ratio of 4.42 and a beta of 1.13.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on VPG. Wall Street Zen downgraded shares of Vishay Precision Group from a "buy" rating to a "hold" rating in a report on Saturday, February 14th. Lake Street Capital set a $54.00 price objective on shares of Vishay Precision Group and gave the company a "buy" rating in a research note on Thursday, February 12th. Weiss Ratings lowered shares of Vishay Precision Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 6th. Zacks Research raised shares of Vishay Precision Group from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Finally, B. Riley Financial reaffirmed a "buy" rating and set a $63.00 target price (up from $45.00) on shares of Vishay Precision Group in a report on Tuesday, February 3rd. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $53.67.

Institutional Investors Weigh In On Vishay Precision Group

Institutional investors have recently modified their holdings of the business. LPL Financial LLC increased its stake in shares of Vishay Precision Group by 6.3% in the 4th quarter. LPL Financial LLC now owns 7,522 shares of the scientific and technical instruments company's stock valued at $290,000 after purchasing an additional 448 shares in the last quarter. UBS Group AG boosted its position in Vishay Precision Group by 0.8% during the third quarter. UBS Group AG now owns 67,724 shares of the scientific and technical instruments company's stock worth $2,171,000 after purchasing an additional 523 shares in the last quarter. AQR Capital Management LLC grew its holdings in Vishay Precision Group by 8.7% in the fourth quarter. AQR Capital Management LLC now owns 11,849 shares of the scientific and technical instruments company's stock valued at $456,000 after purchasing an additional 952 shares during the period. Russell Investments Group Ltd. increased its position in shares of Vishay Precision Group by 826.7% in the third quarter. Russell Investments Group Ltd. now owns 1,112 shares of the scientific and technical instruments company's stock valued at $36,000 after buying an additional 992 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its stake in shares of Vishay Precision Group by 85.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,332 shares of the scientific and technical instruments company's stock worth $75,000 after buying an additional 1,076 shares during the period. 87.61% of the stock is currently owned by institutional investors and hedge funds.

Vishay Precision Group Company Profile

Vishay Precision Group NYSE: VPG specializes in the design, manufacture and calibration of precision sensors, instrumentation and measurement systems used in a broad range of applications. Its product portfolio includes load cells, tension links, weighing modules, torque transducers, digital indicators and data acquisition systems. These solutions serve critical requirements for accuracy, reliability and repeatability in sectors such as industrial automation, test and measurement, medical devices, food and beverage processing, aerospace and defense.

The company traces its roots to the sensor and measurement division of Vishay Intertechnology, Inc, from which it was spun off as an independent public company in March 2016.

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