Vishay Intertechnology, Inc. (NYSE:VSH) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Vishay Intertechnology, Inc. (NYSE:VSH) recently reported its quarterly numbers. The result was positive overall - although revenues of US$746m were in line with what the analysts predicted, Vishay Intertechnology surprised by delivering a statutory profit of US$0.22 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Vishay Intertechnology

After the latest results, the consensus from Vishay Intertechnology's four analysts is for revenues of US$3.07b in 2024, which would reflect a discernible 6.4% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to tumble 58% to US$0.75 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.09b and earnings per share (EPS) of US$1.12 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The consensus price target held steady at US$22.67, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Vishay Intertechnology, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$19.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vishay Intertechnology is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vishay Intertechnology's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.5% by the end of 2024. This indicates a significant reduction from annual growth of 6.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Vishay Intertechnology is expected to lag the wider industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vishay Intertechnology's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$22.67, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts 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 2 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.