Shares of Vishay Intertechnology (NYSE:VSH) surged more than 10% in premarket trading on Wednesday after the company reported first-quarter results ahead of analyst expectations and issued stronger-than-expected guidance for the current quarter.
The stock gained 10.38% following the earnings announcement.
Revenue and earnings top forecasts
Vishay posted adjusted earnings per share of $0.05 for the first quarter, beating analyst expectations of $0.01 per share by $0.04.
Revenue rose to $839.2 million, exceeding the consensus estimate of $818.64 million and representing year-on-year growth of 17% from $715.2 million in the same quarter last year.
Gross margin improved to 21.0% from 19.0% in the prior-year period.
Company issues strong second-quarter guidance
For the second quarter of 2026, Vishay forecast revenue in the range of $875 million to $905 million.
The midpoint of the guidance, at $890 million, came in above analyst expectations of $857.8 million.
The company also projected gross profit margin of 22.0%, plus or minus 50 basis points.
“Vishay’s first quarter financial results demonstrate that the Vishay 3.0 strategy is working. As a result of the investments we made to expand capacity of high-growth, high-margin products, Vishay is reliably scaling with our customers,” said Joel Smejkal, president and chief executive officer of Vishay.
Orders and margins continue improving
Vishay reported a book-to-bill ratio of 1.34 during the quarter.
Within the total, semiconductors recorded a ratio of 1.47, while passive components posted a ratio of 1.23.
The company said backlog at the end of the quarter stood at 5.7 months.
Operating margin improved to 2.6%, compared with 0.1% in the same quarter a year earlier.
Company serves broad industrial markets
Vishay manufactures discrete semiconductors and passive electronic components used across automotive, industrial, computing, consumer electronics, telecommunications, military, aerospace and healthcare markets.