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Vishay Intertechnology (VSH) Q3 Earnings: What's in Store?

Vishay Intertechnology, Inc.VSH is slated to report third-quarter 2018 results on Oct 30.

The company topped the Zacks Consensus Estimate in three of the trailing four quarters, recording an average beat of 6.5%.

In the last reported quarter, Vishay Intertechnology delivered a positive earnings surprise of 12.5%. Earnings of 54 cents per share surged 50% on a year-over-year basis and 35% sequentially.

Revenues increased 18% year over year and 6.1% on a sequential basis to $761.03 million.The figure came slightly below the Zacks Consensus Estimate of $767.5 million.

The company's strong performance in automotive and industrial markets drove year-over-year growth. Further, positive contributions from the acquisition of UltraSource fueled the results.

For third-quarter 2018, Vishay expects total revenues to be in the range of $755-$795 million. The Zacks Consensus Estimate for revenues is pegged at $777.6 million.

Further, the Zacks Consensus Estimate for earnings is projected at 54 cents per share.

Let's see how things are shaping up for this quarter.

Vishay Intertechnology, Inc. Price and EPS Surprise

Vishay Intertechnology, Inc. Price and EPS Surprise | Vishay Intertechnology, Inc. Quote

Robust Product Portfolio: A Key Catalyst

Vishay Intertechnology's strong product portfolio continues to aid its momentum in the all the geographical regions and end-markets.

The company's resistors & inductors product lines which contribute the most to its total revenues are likely to maintain their momentum in the to-be-reported quarter. Vishay Intertechnology's continued investments in the production of metal strip resistors, MELF film resistor, thin film resistor chips and the capacities of power inductors remain a key catalyst.

Further, the company's strong momentum in China aided by the robust capacitors is expected to benefit its performance in Asia. Additionally, strong diodes are expected to continue benefiting Vishay's performance in the automotive and industrial markets.

Moreover, the company continues to perform well in the automotive market on the back of MOSFET transistors. This is expected to drive the top-line in the third quarter.

Furthermore, the company's optoelectronic products lines are expected to continue drive its momentum in the automotive applications space.

Other Factors to Consider

Improving demand for Vishay Intertechnology's products in all the regions - Americas, Europe and Asia are likely to aid its third-quarter results.

Growing robotics, lighting, and energy metering sectors will continue to drive Vishay's growth in the Americas. Further, strengthening automotive and industrial markets are major positives for the company's position in the European market.

Furthermore, the company remains optimistic about its position in Asia, thanks to increasing demand for energy infrastructures, industrial and automotive electronic equipment.

Moreover, general electrification of the vehicles and emerging 5G technology are major positives for Vishay Intertechnology's business growth.

Additionally, improving backlog and expanding manufacturing capacities are likely to contribute well to the company's top-line.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates along with a positive Earnings ESP . The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Vishay Intertechnology currently sports a Zacks Rank #1 and an Earnings ESP of +0.62%. Hence, our proven model indicates that the company is likely to beat estimates in the third quarter.

Other Stocks That Warrant a Look

Here are few stocks worth considering as our model shows that these too have the right combination of elements to deliver earnings beat in the upcoming releases.

NetScout Systems, Inc. NTCT has an Earnings ESP of +7.14 % and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Generac Holdings Inc. GNRC has an Earnings ESP of +3.19% and a Zacks Rank #1.

Silicon Motion Technology Corporation SIMO has an Earnings ESP of +0.15% and a Zacks Rank #1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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