Vishay Intertechnology Inc. (VSH) is expected to see explosive earnings growth in 2010 as the technology sector climbs out of the recession. The company has surprised on estimates 3 out of the last 4 quarters by an average of 23.2%.
Vishay is in the hot technology sector. You can see the global recovery both in its earnings estimates and in its stock chart.
The company manufactures discrete semiconductors which includes diodes, rectifiers, MOSFETs, optoelectronics and certain ICs, as well as passive electronic components including resistors, capacitators, inductors, sensors and transducers.
Vishay’s products are found in all kinds of electronic devices including those in cars, military devices and medical markets.
Zacks Consensus Estimates Trending Higher into the First Quarter Report
Vishay is scheduled to report first quarter earnings on May 5. Analysts are bullish ahead of the number as the company, and the tech industry, has been experiencing sequential growth the last few quarters. The Zacks Consensus Estimate for the quarter is higher by a penny to 21 cents per share in the last 30 days.
Similarly, for 2010, the Zacks Consensus jumped 3 cents to 89 cents in the last month.
Analysts now expect earnings growth of 4330% in 2010 as the company earned just 2 cents in 2009.
Vishay Surprised on the Fourth Quarter
On Feb 9, Vishay reported its fourth quarter results and beat by 41.7%. Earnings per share were 17 cents compared to the Zacks Consensus of 12 cents.
Revenue grew 5.5% to $607 million from $575.4 million in the fourth quarter of 2008.
Orders were approaching pre-crisis levels due to strong end demand.
In its outlook for revenue for the first quarter, Vishay anticipated a range of $630 to $670 million and for results to continue to improve.
The Chart
The stock has been hot since March 2009, hitting new 2-year highs.
Value Fundamentals
Vishay Intertechnology is a value stock. It is trading with a forward P/E of just 12. It has a price-to-book ratio of 1.3 which is under the industry average of 1.4 and well within the value parameters of under 3.0.
Vishay is a Zacks #1 Rank (strong buy) stock.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
