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Investing.com -- Vishay Intertechnology, Inc. (NYSE:VSH) reported a first quarter loss but provided upbeat guidance, sending its shares surging 4.2% in trading following the announcement.
The discrete semiconductors and passive electronic components manufacturer posted a loss of $0.03 per share for the first quarter ended March 29, 2025, falling short of analysts’ expectations for earnings of $0.03 per share. Revenue came in at $715.2 million, slightly above the consensus estimate of $713.5 million and up 1.5% YoY.
Despite the earnings miss, Vishay’s outlook for the second quarter boosted investor confidence. The company expects Q2 revenue between $740 million and $780 million, with the midpoint of $760 million surpassing the analyst consensus of $747.8 million.
Joel Smejkal, president and CEO, commented on the market conditions, stating, "Market signals indicate that much of the channel inventory that overhung the market has normalized. We executed well during the first quarter on our strategic levers to drive faster revenue growth and improve profitability."
The company reported a book-to-bill ratio of 1.08 for the quarter, with semiconductors at 1.12 and passive components at 1.04, indicating healthy demand. Backlog at quarter-end stood at 4.7 months.
Vishay’s gross margin for Q1 was 19.0%, which included a negative impact of approximately 200 basis points related to the addition of Newport. For Q2, the company anticipates a gross profit margin of 19.0% ± 50 basis points, factoring in a similar impact from Newport.
The positive market reaction suggests investors are focusing on Vishay’s forward-looking guidance rather than the Q1 earnings miss, as the company positions itself for potential market improvements.
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