It has been about a month since the last earnings report for Vishay Intertechnology (VSH). Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Vishay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Vishay's Q2 Earnings & Revenues Beat

Vishay Intertechnology delivered second-quarter 2023 adjusted earnings of 68 cents per share, surpassing the Zacks Consensus Estimate by 13.3%. The figure fell by 17.1% year over year.

Revenues of $892.11 million increased by 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $873.7 million.

The solid performance of MOSFETS drove year-over-year revenue growth in the reported quarter. Strength in resistor and capacitor product lines contributed well.

However, softness in diodes, optoelectronics and inductors was a concern.

Vishay’s book-to-bill ratio was 0.69 at the end of the second quarter.

Product Segments in Detail

Resistors: The segment generated revenues of $222.4 million (25% of the total revenues), up 4.3% year over year. The figure missed the Zacks Consensus Estimate of $224 million. The book-to-bill was 0.74.

Inductors: The product line generated revenues of $89.2 million (10% of the total revenues), which decreased 0.4% on a year-over-year basis. The figure came ahead of the Zacks Consensus Estimate of $81 million. The book-to-bill was 0.84.

MOSFET: The product line generated revenues of $207.4 million (23.2% of the total revenues), increasing 30.9% year over year. The figure beat the Zacks Consensus Estimate of $174 million. The book-to-bill was 0.68.

Capacitors: The product line generated revenues of $133.9 million (15% of the total revenues), up 1.2% year over year. The figure came below the Zacks Consensus Estimate of $137 million. The book-to-bill was 0.70.

Diodes: The segment generated revenues of $174.7 million (19.6% of the total revenues), down 9.1% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $189 million. The book-to-bill was 0.54.

Optoelectronics: The product line generated revenues of $64.4 million (7.2% of the total revenues) in the reported quarter. The figure came below the Zacks Consensus Estimate of $69 million. The figure was down 17.3% from the year-ago quarter. The book-to-bill was 0.70.

Operating Details

In second-quarter 2023, the gross margin was 28.9%, contracting 140 basis points (bps) on a year-over-year basis.

Selling, general and administrative expenses were $122.9 million, increasing by 11.3% year over year. As a percentage of total revenues, the figure expanded 100 bps from the year-ago quarter to 13.8%.

The operating margin contracted 240 bps on a year-over-year basis to 15.1%.