Vishay Precision Group (VPG) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company saw a revenue decline, missing expectations with $71.74 million, an 11.2% decrease from the previous year. Additionally, VPG's guidance for Q2 2025 revenues is projected to be between $70 million to $76 million, which is below analyst estimates. Amidst challenging market conditions, the company continues to focus on strategic growth initiatives, supported by a strong balance sheet and cash flow.
RevenueVishay Precision Group's Q1 2025 revenue experienced a decline, totaling $71.74 million, down from $80.78 million in Q1 2024. The Sensors segment contributed $27.41 million, showcasing a decrease from the previous year. Weighing Solutions accounted for $26.44 million, also reflecting a year-over-year drop. Measurement Systems generated $18.25 million, marking a significant decline compared to the prior year. Additional segments included corporate/other adjustments of $-360,000, with no restructuring or unallocated G&A expenses recorded.
Earnings/Net IncomeVishay Precision Group reported a net loss of $0.07 per share in Q1 2025, compared to a profit of $0.44 per share in Q1 2024, marking a 115.9% negative change. The net loss totaled $-955,000, reflecting a deterioration from the net income of $5.83 million in the previous year. The decline in EPS indicates challenging financial performance.
Price ActionThe stock price of
has climbed 4.52% during the latest trading day, has dropped 6.02% during the most recent full trading week, and has jumped 14.47% month-to-date.
Post-Earnings Price Action ReviewThe strategy of purchasing Vishay Precision Group shares following a quarterly revenue increase and holding for 30 days has delivered mixed outcomes over the past five years. Although there were short-lived periods of positive returns, the overall performance was often lackluster, frequently underperforming the broader market. For instance, in Q1 2020, despite VPG's revenue boost in Q4 2019, the stock rose by only 3.4% in the subsequent month, trailing the S&P 500's 4.6% gain. In the subsequent quarters, the stock either remained flat or experienced declines, such as in Q3 2020, where it fell by 5.6%, while the S&P 500 only declined by 2.6%. Over the past five years, this strategy's annualized return was around 0.5%, significantly lower than the S&P 500's 15.5% annualized return, underscoring the strategy's overall lackluster performance due to underperformance in several quarters.
CEO CommentaryZiv Shoshani, Chief Executive Officer of
, indicated that despite a challenging business environment, the company achieved its second consecutive quarter of a book-to-bill ratio exceeding 1.00, with total orders growing 2.7% sequentially to $74.4 million. He highlighted that the company's manufacturing strategy positions it well to manage the impacts of fluctuating tariff and trade policies. Shoshani emphasized ongoing efforts in business development, particularly in humanoid robot opportunities, while noting that adjusted gross margin, adjusted operating margin, and EBITDA remained stable despite lower revenues compared to the previous quarter.
GuidanceThe company anticipates ongoing volatility in the global economy but remains focused on executing long-term growth and cost-efficiency strategies, supported by a strong balance sheet and cash flow. VPG expects to leverage its manufacturing footprint to navigate economic challenges while continuing to pursue growth initiatives in key market segments.
Additional NewsRecent activities at Vishay Precision Group include insider trading movements and hedge fund portfolio adjustments. SEJAL SHAH GULATI sold 814 shares of VPG stock, valued at approximately $20,032, in the past six months. On the institutional side, FMR LLC significantly decreased its holdings by removing 524,153 shares, while PORTOLAN CAPITAL MANAGEMENT, LLC added 492,201 shares, showcasing diverse investment strategies among institutional investors. These actions reflect varying confidence levels in VPG's future prospects amidst fluctuating market conditions.
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