Vishay Intertechnology, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Vishay Intertechnology, Inc. (NYSE:VSH) had a good week, as its shares rose 5.5% to close at US$17.89 following the release of its third-quarter results. Things were not great overall, with a surprise (statutory) loss of US$0.14 per share on revenues of US$735m, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Vishay Intertechnology

After the latest results, the three analysts covering Vishay Intertechnology are now predicting revenues of US$3.10b in 2025. If met, this would reflect a reasonable 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 64% to US$1.04. Before this earnings report, the analysts had been forecasting revenues of US$3.25b and earnings per share (EPS) of US$1.43 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the US$21.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Vishay Intertechnology analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$17.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Vishay Intertechnology's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vishay Intertechnology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Vishay Intertechnology going out to 2025, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Vishay Intertechnology that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.