Vishay Intertechnology (NYSE: VSH) reported Q3 EPS of $0.25, $0.02 better than the analyst estimate of $0.23. Revenue for the quarter came in at $640 million versus the consensus estimate of $621.87 million.

• Revenues Q3 of $640 million
• Gross margin Q3 of 23.7%; adjusted gross margin 23.7%
• Operating margin Q3 of 9.6%; adjusted operating margin 9.6%
• EPS Q3 of $0.23; adjusted EPS $0.25
• Free Cash for the trailing 12 months Q3 of $147 million
• Repurchased in Q3 $58.9 million principal amount of convertible notes due 2025; YTD repurchased $134.7 million principal amount for approximately 95% of face value
• Acquired the worldwide business and substantially all of the U.S. assets of Applied Thin-Film Products, a California-based manufacturer of custom, build-to-print thin film substrates for $25.9 million
• Guidance Q4 of revenues $620 to $660 million and gross margins of 23.9% plus/minus 70 basis points at a EUR/USD exchange rate of 0.86

Commenting on results for the third quarter 2020, Dr. Gerald Paul, President and Chief Executive Officer stated, “Following an historically unprecedented drop of sales to automotive customers in the second quarter, Vishay experienced a stronger than anticipated rebound of sales to automotive customers in the third quarter, as well as continued strength from Asian markets. Inventories of Vishay products at distribution were reduced by $18 million driven by high demand for consumer related products.”

Dr. Paul continued, “The expected recovery in the third quarter occurred more steeply than anticipated. Having reacted promptly by reducing fixed costs, Vishay is now ready to exploit the next upturn to the full extent. Our focus stays on profitability and cash generation while pursuing our long-term strategies as well as, especially during COVID-19, safeguarding the health and well-being of our employees.”

Commenting on the outlook Dr. Paul stated, “For the fourth quarter 2020 we guide for revenues in the range of $620 to $660 million at a gross margin of 23.9% plus/minus 70 basis points, assuming a EUR/USD exchange rate of 0.86.”

GUIDANCE:

Vishay Intertechnology sees Q4 2020 revenue of $620-660 million, versus the consensus of $627.47 million.

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