Vishay Intertechnology (VSH) Q4 2023 earnings summary

Executive summary

• 4Q23 revenue was $785.2 million, diluted EPS was $0.37, book-to-bill was 0.75, and quarter-end backlog was 5.3 months.

• FY23 revenue was $3,402.0 million, down from $3,497.4 million in FY22; diluted EPS was $2.31, versus $2.98.

• Weaker industrial demand, inventory adjustments and shorter lead times pressured Q4; aerospace/defense and medical demand remained stronger. Inventory digestion was expected to continue through H1 2024.

Financial highlights

• 4Q23 gross profit was $200.7 million, gross margin 25.6%, operating income $77.8 million and operating margin 9.9%.

• 4Q23 net earnings attributable to stockholders were $51.5 million, versus $65.5 million in 3Q23 and $72.8 million in 4Q22.

• FY23 net earnings attributable to stockholders were $323.8 million, versus $428.8 million in FY22; operating income was $486.1 million, versus $615.5 million.

• FY23 gross margin was 28.6% and operating margin 14.3%, versus 30.3% and 17.6% in FY22; adjusted diluted EPS was $2.44, versus $3.16.

• FY23 adjusted EBITDA was $664.4 million, or 19.5% of revenue, versus $774.3 million and 22.1% in FY22; FY23 free cash was $37.4 million, versus $160.2 million.

Outlook and guidance

• 1Q24 revenue guidance is $735 million ± $20 million; gross margin 24.0% ± 50 bps; SG&A $130 million ± $2 million.

• FY24 capital expenditures are guided at $528 million ± $5 million at current exchange rates; normalized effective tax rate is ~31.0%.

• FY24 stockholder returns are committed at a minimum of 70% of annual free cash flow.

• Management expected inventory digestion through H1 2024, with some end markets potentially rebounding sooner.