Vishay Intertechnology Inc . (NYSE:VSH) shares have tumbled to a 52-week low, touching down at $19.53 amidst a challenging market environment. This latest price point marks a significant drop for the company, which has seen its stock value decrease by 28.67% over the past year. Investors are closely monitoring Vishay's performance as it navigates through the pressures affecting the global semiconductor industry, including supply chain disruptions and fluctuating demand. The company's journey to its current 52-week low reflects broader sector trends and raises questions about near-term recovery prospects.
In other recent news, Vishay Intertechnology reported Q2 2024 revenues of $741.2 million, a figure that remained virtually unchanged from the previous quarter. Despite lower demand from automotive and industrial sectors, gains from the Newport acquisition and increased demand in China and Taiwan for AI servers and consumer devices helped offset the decline. The company's gross margin was recorded at 22.0%.
Vishay Intertechnology has declared a quarterly dividend of $0.10 per share for both common and Class B common stock. The company also announced strategic investments for capacity expansion, planned at $2.6 billion from 2023 to 2028. This includes a planned increase in MOSFET capacity by 12% in 2025 and semiconductor products by 5.5% in 2024.
TD Cowen maintained a Hold rating on Vishay's shares but reduced the price target from $24.00 to $22.00 due to the company's performance. The company has also broadened its market presence by acquiring Ametherm, aiming to boost its standing in the electric vehicle and battery management system markets.
Looking ahead, Vishay anticipates Q3 2024 revenues to be between $725 million and $765 million, with a predicted gross margin of 21.0%. The company is also making progress with its expansion project in Turin, Italy, with commercial diode shipments anticipated soon. These are the latest developments in the ongoing story of Vishay Intertechnology.
InvestingPro Insights
As Vishay Intertechnology Inc. (VSH) grapples with the market's trials, InvestingPro data and tips provide a clearer picture of the company's financial health and future outlook. The company's market capitalization stands at $2.69 billion, with a Price/Earnings (P/E) ratio of 16.18, suggesting a valuation that may interest value-oriented investors. The P/E ratio is slightly more appealing when adjusted for the last twelve months as of Q2 2024, at 14.92. Despite recent share price struggles, Vishay has a history of consistent dividend payments, having maintained them for 11 consecutive years, offering a dividend yield of 1.99% as of the last dividend ex-date on June 13, 2024.
InvestingPro Tips indicate that Vishay's road ahead may have challenges, with analysts revising earnings downwards and anticipating a sales decline for the current year. Net income is also expected to drop this year, aligning with a revenue decline of 11.76% over the last twelve months as of Q2 2024. However, it's not all bleak; Vishay is predicted to remain profitable this year, has liquid assets surpassing short-term obligations, and operates with a moderate level of debt. These factors could contribute to the company's resilience in the face of sector-wide headwinds.
For investors seeking additional insights, InvestingPro offers more tips on Vishay, which can be accessed via their platform. These tips delve deeper into the company's financials and market performance, providing a comprehensive toolkit for making informed investment decisions.
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