Core Insights - Vishay Intertechnology, Inc. reported third-quarter 2025 earnings of 4 cents per share, matching the Zacks Consensus Estimate, but down from 8 cents in the same quarter last year [1][8] - Revenues for the quarter were $790.6 million, exceeding the Zacks Consensus Estimate by 2% and reflecting a year-over-year increase of 7.5% [1][8] Revenue Breakdown - Revenues from MOSFETs, which account for 21.1% of total revenues, were $167.1 million, up 13.6% year over year, with a book-to-bill ratio of 0.86 [3] - Diodes generated $149.6 million in revenues, representing an increase of 3% year over year, with a book-to-bill ratio of 1.07 [3] - Optoelectronics revenues were $55.6 million, down 12% year over year, with a book-to-bill ratio of 0.93 [4] - Resistors brought in $195.7 million, up 8.2% year over year, with a book-to-bill ratio of 0.92 [4] - Inductors generated $92 million, reflecting a 1.9% year-over-year increase, with a book-to-bill ratio of 0.99 [4] - Capacitors saw revenues of $130.6 million, up 20.1% year over year, with a book-to-bill ratio of 1.07 [5] Financial Performance - Adjusted EBITDA for the third quarter was $76 million, a 6.3% increase year over year, while the adjusted EBITDA margin contracted by 10 basis points to 9.6% [5] - The operating margin improved to 2.4% from a negative 2.5% in the year-ago quarter [5] Balance Sheet and Cash Flow - As of September 27, 2025, cash and cash equivalents were $444.1 million, down from $473.9 million as of June 28, 2025 [6] - Long-term debt increased to $919.7 million from $914.5 million [6] - Net cash provided by operating activities was $27.6 million, while the company reported a negative free cash flow of $24.3 million for the quarter [6] Q4 Guidance - For the fourth quarter, Vishay Intertechnology expects revenues of approximately $790 million, with earnings projected to improve to 7 cents per share [7][9]

Financial Performance - 3Q 2025 revenues reached $790.6 million[26], compared to $762.3 million in 2Q 2025 and $735.4 million in 3Q 2024[27, 66] - Gross margin was 19.5%[26, 66], including a negative impact of approximately 150 bps related to Newport[26, 29] - Adjusted EPS was $0.04[26, 29], while EPS was $(0.06)[26, 29] - EBITDA margin was 9.6%[29] Segment Results - MOSFETs revenues were $167.1 million with a gross margin of 10.1%[32] - Diodes revenues were $149.6 million with a gross margin of 20.3%[32] - Resistors revenues were $195.7 million with a gross margin of 20.1%[33] - Capacitors revenues were $130.6 million with a gross margin of 20.1%[33] Revenue Mix and Sales Channel - Distribution accounted for 57% of revenue, OEM 37%, and EMS 6%[21] - Distribution revenue increased 4% QoQ and 10% YoY, driven by growth in Asia related to AI servers and smart grid infrastructure[20] - OEM revenue increased 6% QoQ and 6% YoY, driven by increased volume from automotive and industrial customers[20] Regional Performance - Asia's revenue increased 7% QoQ and 18% YoY[23], representing 43% of the total revenue[24] - Europe's revenue increased 1% QoQ and 1% YoY[23], accounting for 33% of the total revenue[24] - Americas' revenue increased 2% QoQ and 1% YoY[23], making up 24% of the total revenue[24] Guidance - The company projects 4Q 2025 revenue of $790 million, with a variance of plus or minus $20 million[47] - Gross margin for 4Q 2025 is expected to be 19.5%, with a variance of plus or minus 50 bps, including a negative Newport impact of 150-175 bps[47]

Investment Rating - The report indicates a positive outlook for the semiconductor industry, suggesting a potential better than expected Q4 2023, with preferred picks including Texas Instruments, Renesas, Infineon, and STMicroelectronics [2][3]. Core Insights - The semiconductor industry is experiencing a recovery phase, with a slight increase in inventories and supportive pricing dynamics observed for the first time since May 2023 [2][3]. - Pricing across all product categories has shown an increase, with an average of 2% month-over-month and 15% year-over-year, indicating a positive trend in demand and product mix [3][4]. - The report highlights a broad-based recovery in inventory levels, with most companies either flat or up in inventory units across various products [4]. Summary by Sections Inventory Trends - MCU inventories have shown a 1% month-over-month increase after a 2% decline last month, with a notable 7% month-over-month increase in Capacitors [3]. - Overall inventory levels are stable, with destocking in MCUs slowing down, suggesting a transition to normalized inventory levels [10][18]. Pricing Dynamics - The average year-over-year pricing is up 9%, driven by significant increases in specific categories such as NXP's Wireless & RF and Microprocessors, which increased by 78% and 18% respectively [8]. - Pricing trends are supportive, with all product categories experiencing increases, reinforcing the positive sentiment in the market [4][8]. Company Observations - The report includes heatmaps that indicate pricing was up 10% year-over-year in October compared to 8% in September, suggesting a consistent upward trend across categories [4]. - The analysis of company-specific data shows that most companies are experiencing either stable or increasing inventory levels, indicating a healthy recovery across the semiconductor sector [4][18].

Core Viewpoint - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is expected to report positive results, with strong demand for high-performance computing and AI infrastructure driving growth [1] Company Overview - Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) specializes in the production and sale of integrated circuits and semiconductor devices, providing fabrication and related services [1] - The company is recognized for its leadership in leading node manufacturing, which enables it to capture market share and benefit from a robust demand environment [1] Market Context - The company is a key supplier for major clients such as AMD and NVIDIA, indicating its significant role in the semiconductor industry [1] - There is a competitive landscape where certain AI stocks are perceived to offer greater upside potential with less downside risk compared to TSM [1]

Investment Rating - The report maintains a positive outlook on the semiconductor industry, indicating a transition to a more normalized phase of distributor inventory levels and pricing dynamics, with preferred picks being TI, Renesas, and Infineon [2][3]. Core Insights - The semiconductor industry is experiencing ongoing destocking across most segments, with stable pricing dynamics. Prices remained flat to slightly up in the low single digits across all categories, which is supportive in mitigating deflation risks linked to oversupply [2][3]. - The report highlights that MCU inventory digestion has slowed but continues to decrease, with a 4% month-over-month decline. Overall inventory was down 5% on average, driven by significant destocking in Power Management Circuits, Data Converters, Amplifiers, and Microprocessors, which saw declines of 9-14% month-over-month [3][4]. - Pricing trends are reassuring, with an average increase of 1% month-over-month and 14% year-over-year across all product categories, likely influenced by product mix [3][5]. Summary by Product Area - **Microcontrollers (MCUs)**: Normalized unit inventory decreased by 4% month-over-month, with pricing flat compared to last month and up 2% year-over-year [4][9]. - **Transistors**: Inventory down 2% month-over-month, while pricing increased by 2% month-over-month and 21% year-over-year, largely driven by bipolar transistors [4][15]. - **Power Management Circuits, Data Converters, Amplifiers, and Microprocessors**: These categories experienced significant inventory declines of 9-14% month-over-month [4][15]. - **Multilayer Ceramic Capacitors (MLCC)**: Inventory volume at distributors was up 6% month-over-month and up 1% in September [4][15]. Conclusions from Company Heatmaps - The pricing environment is manageable, with average year-over-year pricing up 6% in September, driven by significant increases in NXP's Wireless & RF and Microprocessors pricing [5][9]. - Inventory levels are generally stable, with notable declines in specific categories driven by changes in the "other" category [5][11].

Core Insights - Vishay Intertechnology, Inc. (VSH) reported a second-quarter 2025 loss of 7 cents per share, missing the Zacks Consensus Estimate of earnings of 2 cents and down from earnings of 17 cents in the same quarter last year [1][7] - Revenues for the second quarter were $762.3 million, exceeding the Zacks Consensus Estimate by 0.3% and reflecting a year-over-year increase of 2.9% [1][7] Financial Performance - The company's weak second-quarter performance led to a 14.05% decline in share price, with a year-to-date drop of 17.8%, underperforming the Zacks Computer and Technology sector's growth of 10.9% [2] - VSH has a mixed earnings surprise history, missing the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 149.2% [2] Revenue Breakdown - Revenues from MOSFETs (19.5% of total revenues) were $148.6 million, down 4.19% year over year, with a book-to-bill ratio of 1.00 [3] - Diodes (19.4% of total revenues) generated $147.9 million, up 1.1% year over year, with a book-to-bill ratio of 0.93 [3] - Optoelectronics (7.1% of total revenues) revenues were $54.1 million, up 2.1% year over year, with a book-to-bill ratio of 1.05 [4] - Resistors (25.6% of total revenues) brought in $194.8 million, up 8.5% year over year, with a book-to-bill ratio of 0.91 [4] - Inductors (12.6% of total revenues) revenues were $95.7 million, up 1.7% year over year, with a book-to-bill ratio of 0.91 [4] - Capacitors (15.9% of total revenues) generated $121.1 million, up 6.8% year over year, with a book-to-bill ratio of 1.40 [5] Profitability Metrics - Adjusted EBITDA for the second quarter was $63.5 million, down 28.2% year over year, with an adjusted EBITDA margin of 8.3%, a contraction of 360 basis points [5][7] - The operating margin was reported at 2.9%, down from 5.1% in the year-ago quarter [5][7] Balance Sheet and Cash Flow - As of June 28, 2025, VSH's cash and cash equivalents were $473.9 million, down from $609.4 million as of March 29, 2025 [6] - Long-term debt decreased to $914.5 million from $988.2 million as of March 29 [6] - The company reported net cash used in operating activities of $8.8 million and a negative free cash flow of $73.2 million for the quarter [6] Guidance - For the third quarter, Vishay Intertechnology expects revenues of $775 million (plus or minus $20 million), with the Zacks Consensus Estimate for revenues at $752.4 million, indicating a year-over-year increase of 2.3% [8] - The anticipated gross profit margin is 19.7% (plus or minus 50 basis points), while the Zacks Consensus Estimate for earnings is 3 cents per share, reflecting a year-over-year decline of 62.5% [8]

Financial Performance - 2Q 2025 revenues reached $762.3 million[26], compared to $715.2 million in 1Q 2025 and $741.2 million in 2Q 2024[27, 65] - Gross margin was 19.5%[26], including a negative impact of approximately 160 basis points related to Newport[26] - Adjusted EPS was ($0.07)[26], while GAAP EPS was $0.01[26] - Free cash flow was negative $73.2 million[68] Segment Results (2Q 2025) - MOSFETs revenues were $148.6 million with a gross margin of 6.3%[31] - Diodes revenues were $147.9 million with a gross margin of 20.0%[31] - Resistors revenues were $194.8 million with a gross margin of 22.8%[32] - Capacitors revenues were $121.1 million with a gross margin of 21.5%[32] Revenue Mix and Growth - Industrial end market increased by 9% QoQ and 2% YoY[16] - Automotive end market increased by 4% QoQ and remained flat YoY[16] - Distribution channel increased by 11% QoQ and 5% YoY, accounting for 56% of revenue[18, 19] - Asia region increased by 12% QoQ and 12% YoY, accounting for 42% of revenue[22, 23] Guidance - 3Q 2025 revenue is expected to be $775 million, +/- $20 million[46] - 3Q 2025 gross margin is guided at 19.7%, +/- 50 bps, with Newport impacting negatively by 160-185 bps[46]

Investment Rating - The report maintains a favorable outlook on the semiconductor industry, particularly favoring companies like Texas Instruments, Renesas, and Infineon [2][3]. Core Insights - The semiconductor inventory levels are showing signs of normalization, with MCU inventories stabilizing after a previous period of understocking [2][3]. - Pricing trends across various semiconductor categories have remained stable, with an average increase of 1% month-over-month and a 14% year-over-year increase [3][9]. - The report highlights a continued digestion of MCU inventories, which had previously been elevated, indicating a positive trend for the industry [3][12]. Summary by Relevant Sections Inventory Trends - MCU inventory has decreased by 1% month-over-month after a 5% decline in the previous month, while overall inventory levels were flat to down 2% across most categories [3][4]. - Capacitors and Sensors saw a month-over-month increase of 6% in inventory, contrasting with declines in other categories [4][15]. Pricing Trends - Pricing for MCUs remained flat month-over-month and increased by 1% year-over-year, while other categories experienced slight increases of 1-3% [4][15]. - The overall pricing environment is deemed manageable, with a year-over-year increase of 3% on a revenue exposure weighted basis [9][12]. Company Observations - The report notes that pricing for transistors increased by 1% month-over-month and 18% year-over-year, driven largely by bipolar transistors [4][15]. - Infineon has seen an increase in MCU inventory to 4% of the total, up from an average of 2.6%, indicating potential overstocking or market share gains [5][19].

Investment Rating - The report maintains a positive outlook on the semiconductor industry, highlighting reassuring pricing trends and improving inventory levels [2][3]. Core Insights - The semiconductor market is experiencing a continued digestion of MCU inventory, with a 5% month-over-month decline and a 24% decrease compared to the previous month [3][4]. - Pricing across all product categories has remained stable, with an average increase of 1% month-over-month and 13% year-over-year [3][8]. - The report emphasizes the positive trends in pricing and inventory, particularly for companies like TI, Renesas, and Infineon, while also noting improvements for STM and other industrial MCU names [2][4]. Summary by Relevant Sections Inventory Trends - MCU inventory has decreased by 5% month-over-month, following a 4% decline the previous month, indicating a healthy destocking process [3][4]. - Other categories such as Sensors and Diodes also saw inventory reductions of 5% and 4% respectively, while overall inventory trends are generally stable [3][4]. Pricing Trends - Pricing for MCUs remained flat month-over-month and year-over-year, while transistors saw a 2% increase month-over-month and a 17% increase year-over-year [4][14]. - Capacitors, Diodes, and Sensors experienced price increases of 2-3%, contributing to an overall stable pricing environment [4][14]. Company Observations - Infineon and STM showed varied pricing trends, with Infineon down 4% and STM up 4% in June compared to May, reflecting a mix-driven pricing environment [5][8]. - The report indicates that inventory levels are stable, with significant destocking in MCUs, previously driven by MCHP and now also by STM [5][11].

Core Viewpoint - Vishay Intertechnology, Inc. reported a first-quarter 2025 loss of 3 cents per share, which met the Zacks Consensus Estimate but was a decline from the previous year's earnings of 22 cents per share. Revenues of $715.2 million exceeded the Zacks Consensus Estimate by 0.74%, but represented a 4.2% year-over-year decline [1][2]. Financial Performance - The company's first-quarter adjusted EBITDA was $54.5 million, a decrease of 40.3% year over year, with an adjusted EBITDA margin contracting by 460 basis points to 7.6%. The operating margin fell to 0.1% from 5.7% in the year-ago quarter [6]. - Revenues from various segments showed mixed results: - MOSFETs generated $142.1 million, down 7.2% year over year [4]. - Diodes brought in $141 million, declining 5.4% year over year [4]. - Optoelectronics revenues increased by 4.1% to $51.2 million [4]. - Resistors fell 4.6% to $179.5 million [5]. - Inductors decreased by 5.2% to $84.1 million [5]. - Capacitors saw a slight decline of 0.4% to $117.4 million [5]. Stock Performance - The weak first-quarter performance led to a 9.8% drop in the company's share price, with a year-to-date decline of 28.4%, significantly underperforming the Zacks Computer and Technology sector's decline of 8.7% [2]. Guidance - For the second quarter, Vishay Intertechnology anticipates revenues of $760 million (plus or minus $20 million), with a Zacks Consensus Estimate of $738.4 million, indicating a year-over-year fall of 0.38%. The expected gross profit margin is 19.0% [9].