Vishay misses earnings on Newport drag despite revenue beat
Book-to-bill of 1.20 and 4.9-month backlog signal strong demand, but margin pressure persists
Vishay Intertechnology reported fourth quarter earnings that fell short of analyst expectations, with GAAP earnings per share of just 1 cent—missing the consensus estimate of about 4 cents—despite revenue that topped forecasts. The mixed results highlight ongoing margin pressures at the company's Newport fabrication facility even as demand signals strengthen across key end markets.
Revenue for the quarter reached $800.9 million, beating analyst projections of approximately $780 million and representing a 2.7% upside to expectations. However, profitability remained constrained, with gross margin of 19.6% dampened by approximately 130 basis points of negative impact related to Newport underutilization.
Beneath the earnings disappointment, order trends paint a more encouraging picture. Vishay recorded a book-to-bill ratio of 1.20 for the quarter—with semiconductors at 1.27 and passive components at 1.13—while ending the period with a 4.9-month backlog. Chief Executive Officer Joel Smejkal noted that orders reached a three-year high during the quarter, and he characterized the company as "ready to take off" in 2026.
The top-line strength was driven by growing demand in industrial and AI-related power applications, which helped deliver revenue 1.3% higher than the third quarter. This momentum carried into the company's guidance for the first quarter of 2026, with management projecting revenue between $800 million and $830 million and gross margin of 19.9% plus or minus 50 basis points—still reflecting a headwind of 50 to 75 basis points from Newport.
The earnings miss comes against a backdrop of cautious analyst sentiment heading into the report. Wall Street had maintained a consensus rating equivalent to "Sell" with an average price target of $15, citing concerns about Newport fab underutilization and margin pressures. Vishay shares, which recently touched a 52-week high following product announcements including new 1200V silicon carbide MOSFET power modules, were trading around $20.74 pre-market on Wednesday.
Management maintained the annual dividend at 40 cents per share, signaling confidence in cash generation despite current profitability challenges. For the full year 2025, Vishay reported net revenues of $3.07 billion and a basic and diluted loss per share of 7 cents.
The contrasting signals—strong order metrics and backlog versus earnings compression—present a nuanced picture for investors as the semiconductor components maker moves into 2026. While demand indicators point toward potential recovery, the Newport facility remains a drag on margins that the company must address to translate top-line strength into sustainable profitability.