Loading...
•
Jul 04, 2020
Vishay Q2 2020 Earnings Report
Vishay's Q2 2020 earnings were impacted by COVID-19 lockdowns, particularly affecting automotive plants in Europe and the Americas, with Asia showing a quicker recovery.
Key Takeaways
Vishay reported Q2 2020 revenues of $581.7 million and EPS of $0.17, impacted by COVID-19 lockdowns, especially in the automotive sector. The company repurchased $75.8 million of convertible notes and anticipates recovering sales to automotive customers in Q3 2020.
Revenues for Q2 2020 reached $581.7 million.
EPS for Q2 2020 was reported at $0.17, with adjusted EPS at $0.18.
Gross margin for Q2 2020 stood at 22.5%, with an adjusted gross margin of 22.6%.
Operating margin for Q2 2020 was 7.0%, with an adjusted operating margin of 7.2%.
Forward Guidance
For Q3 2020, Vishay anticipates revenues between $580 million and $620 million with a gross margin of 22.8% plus/minus 70 basis points, assuming a USD/EUR exchange rate of 0.87.
Positive Outlook
- Expects sales recovery to automotive customers.
- Gross margin is guided at 22.8% plus/minus 70 basis points.
- Fundamentals for Vishay’s growth remain intact.
- Focused on profitability and cash generation.
- Successfully mastered temporary economic downturns in the past and are doing so again.
Challenges Ahead
- Sales to distribution partners are expected to be lower.
- The second quarter has been strongly impacted by the lockdowns in many countries due to COVID-19.
- The weakest end market was automotive with revenues lower by 34% compared to the first quarter.
- Lockdowns in many countries due to COVID-19, in particular the shutdown of automotive plants in Europe and the Americas.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...