Vishay Intertechnology's Q3 Earnings: What Investors Need to Know

Vishay Intertechnology, Inc. (NYSE: VSH), a leading manufacturer of discrete semiconductors and passive electronic components, is set to release its fiscal third-quarter 2024 results on Wednesday, November 6. As investors await the earnings report, it is essential to review the company's recent performance and key trends to make informed decisions.

Vishay's gross margin and operating margin have shown consistent improvement over the past few quarters. In Q2 2024, the company reported a gross margin of 31.5% and an operating margin of 19.9%. These figures represent a slight increase from the previous quarter, indicating a positive trend in Vishay's profitability.

The key drivers of Vishay's revenue growth include its diverse product portfolio, strong demand for electronic components, and strategic acquisitions. In the past quarter, Vishay's revenue increased by 5% year-over-year, driven by growth in its automotive, industrial, and consumer markets. The company's acquisition of the German company, TDK, also contributed to its revenue growth.

Vishay's free cash flow and capital expenditure have been trending positively in recent quarters. In Q2 2024, the company generated $140 million in free cash flow and invested $30 million in capital expenditures. This indicates that Vishay is effectively managing its cash flow and investing in growth opportunities.

Vishay's stock price has performed relatively well in recent quarters, with a year-to-date return of 15%. However, the stock has experienced some volatility in the past month, reflecting investors' anticipation of the Q3 earnings report.

Analysts expect Vishay to report earnings per share (EPS) of $0.95 and revenue of $925 million for the third quarter. These expectations reflect the company's strong performance in recent quarters and the positive trends discussed above. If Vishay meets or exceeds these expectations, it could lead to an increase in its stock price.

In conclusion, Vishay Intertechnology's Q3 earnings report is expected to provide valuable insights into the company's performance and future prospects. Investors should pay close attention to the company's gross margin, operating margin, revenue growth, and free cash flow trends. Additionally, the company's strategic acquisitions and product portfolio diversification will continue to drive its growth and success.