Yahoo Finance Earnings Beat: Vishay Precision Group, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Last week, you might have seen that Vishay Precision Group, Inc. (NYSE:VPG) released its quarterly result to the market. The early response was not positive, with shares down 4.8% to US$32.17 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$81m, statutory earnings beat expectations by a notable 29%, coming in at US$0.44 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Vishay Precision Group
Taking into account the latest results, the current consensus, from the two analysts covering Vishay Precision Group, is for revenues of US$320.4m in 2024. This implies a perceptible 7.6% reduction in Vishay Precision Group's revenue over the past 12 months. Statutory earnings per share are expected to plunge 27% to US$1.34 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$352.0m and earnings per share (EPS) of US$1.69 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
The consensus price target fell 9.4% to US$38.50, with the weaker earnings outlook clearly leading valuation estimates.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. It's pretty clear that Vishay Precision Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Vishay Precision Group's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Vishay Precision Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Before you take the next step you should know about the 1 warning sign for Vishay Precision Group that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
