Vishay Intertechnology 2025 Q1 Earnings Misses Targets as Net Income Declines 113%

Vishay Intertechnology (VSH) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company recorded total revenue of $715.24 million, reflecting a 4.2% decrease from the previous year. Despite expectations, Vishay experienced a net loss of $0.03 per share, aligning with analyst predictions. Looking ahead, the company has forecasted Q2 revenues to fall within the $760 million range, which marginally surpasses market estimates. This guidance includes potential impacts from tariffs, projecting a gross profit margin of 19.0%, with a possible fluctuation of 50 basis points.

Revenue
Vishay Intertechnology's revenue for Q1 2025 saw a decline to $715.24 million compared to $746.28 million in Q1 2024. Semiconductor sales contributed $334.24 million, while the MOSFETs and Diodes segments added $142.11 million and $140.96 million, respectively. Optoelectronic Components generated $51.17 million. Passive Components brought in $380.99 million, with Resistors at $179.50 million, Inductors at $84.12 million, and Capacitors contributing $117.37 million.

Earnings/Net Income
The company posted a net loss of $0.03 per share in Q1 2025, transitioning from a profit of $0.22 per share in Q1 2024, marking a significant downturn.

Price Action
The stock price of Vishay Intertechnology dropped by 9.48% during the latest trading day, decreased by 6.62% over the past week, yet managed a 2.10% increase month-to-date.

Post-Earnings Price Action Review
Vishay Intertechnology's strategy of purchasing shares following a quarter-over-quarter revenue drop and holding them for 30 days has underperformed over the past five years. This approach yielded a return of -11.10%, significantly lagging behind the benchmark return of 84.08%, resulting in an excess return of -95.18%. The compound annual growth rate was -2.33%, indicating notable losses. The Sharpe ratio was -0.21, pointing to a negative risk-adjusted return, while the maximum drawdown stood at -19.26%, with volatility at 10.93%. These metrics highlight the strategy's inability to generate profits and its associated investment risks, ultimately rendering it an impractical approach.

CEO Commentary
“Market signals, which continued from the fourth quarter, indicate that much of the channel inventory that overhung the market has normalized. We executed well during the first quarter on our strategic levers to drive faster revenue growth and improve profitability. We are prepared to navigate evolving tariff policies and any demand uncertainties, staying in close contact with our customers to assure them of reliable supply and making adjustments to our spending as necessary,” said Joel Smejkal, President and CEO. The investments made in capacity over the past two years better position Vishay for a market upturn and support a sequential revenue increase guidance of 6%.

Guidance
For the second quarter of 2025, management expects revenues in the range of $760 million, plus or minus $20 million, and a gross profit margin in the range of 19.0%, plus or minus 50 basis points, including an anticipated negative impact of approximately 175 to 200 basis points from the addition of Newport. The guidance reflects the expected effects of tariffs.

Additional News
Recently, Vishay Intertechnology introduced an AEC-Q100 qualified ambient light sensor in a compact rectangular package, designed for automotive applications, which allows for easier integration into space-constrained designs. Additionally, Vishay announced the showcase of its extensive portfolio of power management solutions at the PCIM Europe 2025, focusing on e-mobility, energy storage, and sustainability. The company also released industry-leading solid-state relays, offering continuous load current in a compact SOP-4 package, aimed at space-saving industrial applications. These developments reflect Vishay's ongoing commitment to innovation and its strategic focus on expanding its product offerings across various sectors.