As you might know, Vishay Precision Group, Inc. (NYSE:VPG) recently reported its quarterly numbers. It looks like the results were a bit of a negative overall. While revenues of US$67m were in line with analyst predictions, earnings were less than expected, missing estimates by 5.7% to hit US$0.33 per share. This is an important time for investors, as they can track a company’s performance in its report, look at what top analysts are forecasting for next year, and see whether the latest forecasts would suggest a change of heart on the company. So we collected the latest post-earnings consensus estimates to see what could be in store for next year.
View our latest analysis for Vishay Precision Group
Following the recent earnings report, the consensus fromtwo analysts covering Vishay Precision Group expects revenues of US$285m in 2020, implying a noticeable 2.3% decline in sales compared to the last 12 months. Earnings per share are expected to rise 4.0% to US$1.68. Yet prior to the latest earnings, analysts had been forecasting revenues of US$292m and earnings per share (EPS) of US$1.97 in 2020. From this we can that analyst sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the US$43.00 price target, showing that analysts don’t think the changes have a meaningful impact on the stock’s intrinsic value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how analyst forecasts compare, both to the Vishay Precision Group’s past performance and to peers in the same market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 2.3% a significant reduction from annual growth of 5.2% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 5.0% next year. It’s pretty clear that Vishay Precision Group’s revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$43.00, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Vishay Precision Group going out as far as 2021, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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