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]

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]

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call discusses the global semiconductor industry, focusing on sales trends, product performance, and market dynamics as of May 2025 [1][2][26]. Key Points Sales Performance - Total semiconductor sales increased by **18.2% YoY** in May, following a **22.8% increase** in April [2][26]. - Month-over-month (MoM) sales rose by **9.5%**, slightly above the historical average of **8.2%** for May [3][33]. - Memory sales grew by **17.5% YoY**, while non-memory sales increased by **18.5% YoY** [2][26]. Product Group Performance - **MPU** sales increased by **6.0% MoM** (typical: 4.5%), **DRAM** by **48.4% MoM** (typical: 42.4%), and **NAND** by **37.4% MoM** (typical: 22.6%) [4][38]. - Other product groups underperformed compared to typical patterns, including: - **Discretes**: 1.1% (typical: 2.8%) - **Optoelectronics**: -21.6% (typical: -2.6%) - **Sensors & Actuators**: -0.5% (typical: 3.3%) [4][38]. Geographic Sales Trends - YoY sales increased in all regions except Japan, which saw a **5.4% decline** [41]. - MoM sales growth was observed in all regions except Japan, with notable increases of **14.0% in the Americas** and **9.0% in China** [41][42]. Unit Shipments and ASPs - Total unit shipments were relatively flat, down **0.2% MoM**, while average selling prices (ASPs) rose by **9.8% MoM** [48][51]. - ASPs increased for several product groups, including: - **Memory**: 12.2% - **Analog App Specific**: 6.3% - **Logic**: 3.9% [53][54]. Future Outlook - The data from April and May suggests a potential rebound in bit shipments for DRAM and NAND in 2QCY25, with predictions of **8.2% QoQ growth for DRAM** and **16% QoQ growth for NAND** [55][56]. - ASP growth for DRAM is expected to improve, while NAND ASPs may decline further [55][57]. Investment Implications - **ADI**: Market-Perform, target price $220.00, with valuations needing to catch up to earnings growth [10]. - **AMD**: Market-Perform, target price $95.00, facing high AI expectations but weak core business segments [10]. - **AVGO**: Outperform, target price $295.00, with strong AI trajectory and margins [10]. - **INTC**: Market-Perform, target price $21.00, facing significant operational challenges [11]. - **NVDA**: Outperform, target price $185.00, with substantial datacenter growth potential [12]. - **QCOM**: Outperform, target price $185.00, with a strong product portfolio despite headwinds [13]. Additional Insights - The semiconductor industry is experiencing a mixed recovery, with certain segments showing strong growth while others lag behind typical seasonal patterns [3][4][38]. - The overall market sentiment remains cautiously optimistic, with expectations of continued growth driven by demand in various sectors, particularly in AI and data centers [10][12].

Core Viewpoint - The global semiconductor market is projected to reach $700.9 billion in 2025, reflecting a year-on-year growth of 11.2% driven by demand in AI, cloud infrastructure, and advanced consumer electronics [1][3]. Market Segmentation - The growth in the semiconductor market will be primarily led by logic and memory segments, both expected to see double-digit growth due to sustained demand in various sectors [3]. - Sensor and analog markets will contribute positively to the overall market growth, albeit at a more moderate pace, while discrete semiconductors, optoelectronics, and micro ICs are anticipated to experience slight declines due to specific demand constraints [3]. Regional Analysis - The Americas and Asia Pacific (excluding Japan) are expected to achieve significant growth rates of 18.0% and 9.8% respectively in 2025, while Europe and Japan will see comparatively smaller growth [3][4]. - The total semiconductor market is forecasted to grow from $630.5 billion in 2024 to $700.9 billion in 2025, with a further increase to $760.7 billion in 2026, marking an 8.5% growth [4]. Product Categories - Integrated circuits are projected to grow significantly, with logic and memory segments leading the charge, showing year-on-year growth rates of 23.9% and 11.7% respectively in 2025 [4]. - Discrete semiconductors and optoelectronics are expected to decline by 2.6% and 4.4% respectively in 2025, indicating challenges in these specific markets [4].

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].