Vishay Intertechnology, Inc. (NYSE:VSH) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

The first-quarter results for Vishay Intertechnology, Inc. (NYSE:VSH) were released last week, making it a good time to revisit its performance. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Vishay Intertechnology

Taking into account the latest results, the current consensus, from the four analysts covering Vishay Intertechnology, is for revenues of US$3.07b in 2024. This implies a noticeable 6.4% reduction in Vishay Intertechnology's revenue over the past 12 months. Statutory earnings per share are expected to crater 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. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$22.67, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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$19.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vishay Intertechnology. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Vishay Intertechnology analysts - going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Vishay Intertechnology .

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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.