Why did VPG's EPS miss forecasts in 2024?

Vishay Precision Group's (VPG) EPS missed forecasts in 2024 due to a combination of declining revenues and reduced net income, despite the company's efforts to improve profitability margins.

1. **Revenue Decline**: VPG's revenue fell short of expectations, with reported revenues of $75.7 million in Q3 2024 and $77.4 million in Q2 2024, missing the analyst estimates of $76.71 million and $84.86 million, respectively. This decline in revenue was driven by market challenges and lower demand for the company's products.
2. **Net Income Decrease**: The company's net income also decreased significantly, with a reported net income of $688,000 for the most recent quarter ending on December 31, 2024. This is a substantial decrease from the previous quarter's net income, reflecting the company's struggle to maintain profitability amidst revenue declines.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|VPG|VPG.N|Vishay Precision Group|2024 Q1|0.07|0.44|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q2|-0.03|0.34|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q3|-0.01|-0.1|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q4|-0.18|0.06|169|

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|VPG|VPG.N|Vishay Precision Group|2024 Q1|8.0783E7|5832000|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q2|7.7359E7|4642000|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q3|7.5727E7|-1328000|169|
|VPG|VPG.N|Vishay Precision Group|2024 Q4|7.2653E7|688000|169|

3. **Profit Margin Pressure**: VPG's gross profit margin declined to 40.0% in Q3 2024, down from 41.9% in the previous year. This decline in profit margin indicates that the company is facing increased cost pressures or inefficiencies in its operations, which are further eroding its already slim profit margins.
4. **Market Challenges**: The company has been facing market challenges that have impacted its financial performance. These challenges have likely led to lower demand for VPG's products, resulting in revenue shortfalls and reduced profitability.

In conclusion, VPG's EPS missed forecasts due to a combination of declining revenues, reduced net income, and pressure on profit margins. These factors, combined with market challenges, have created a challenging operating environment for the company in 2024.