Vishay Intertechnology is due to report its third-quarter results before U.S. markets open on Wednesday, November 4. Analysts expect earnings of 28 cents per share on revenue of $964 million, increases of 47% and 5%, respectively, from the previous quarter. The revenue forecast is also 21.88% above the year-earlier figure.
The projections come as investors weigh the company’s recovery against uneven demand for legacy semiconductor and passive components. Industry reports cited in the available information point to elevated supplier inventories and weak demand for analog and discrete components, which could put pressure on order trends and pricing.
Vishay shares have retreated more than 30% from their October 2 level of $38.18, after rising 11% that day amid a wider semiconductor-sector rally. The stock was recently at $25.52. Analysts have a consensus Buy rating and an average price target of $40.50. Oppenheimer maintained its Buy rating and raised its target to $45 from $42 in early October, although earnings estimates have edged down over the past two months and revenue forecasts have been broadly stable.
Investors are also expected to focus on margins. Vishay reported a gross margin of 20%, and the company is expanding manufacturing capacity, including facilities in Germany and the U.K. How it manages costs as production grows will be a key consideration.
Demand in automotive and industrial markets will be another focus. Vishay has introduced automotive-grade optical sensors and presented components for battery and electric-vehicle systems, but it remains unclear whether newer products can offset weaker demand elsewhere.
In the second quarter, the company reported earnings of 19 cents per share, above the 14-cent consensus, and revenue of $918.6 million, also ahead of estimates. The upcoming report will show whether that performance and the expected sequential improvement can continue in a market where demand remains uneven.
Sources: Investing.com News.