Vishay Precision’s first quarter results were met with a significant negative market reaction, as the company underperformed Wall Street’s revenue and profit expectations. Management attributed the underwhelming quarter to shipment delays—particularly $2 million in KELK products—and ongoing softness in Measurement Systems due to sluggish demand in the global steel and automotive sectors. CEO Ziv Shoshani described the quarter’s environment as challenging, but pointed to sequential order growth and strong cash generation as key positives. The leadership team also acknowledged that operational issues and weak demand in certain end markets weighed on both sales and margins.
Is now the time to buy VPG? Find out in our full research report (it’s free).
Vishay Precision (VPG) Q1 CY2025 Highlights:
- Revenue: $71.74 million vs analyst estimates of $73.02 million (11.2% year-on-year decline, 1.7% miss)
- Adjusted EPS: $0.04 vs analyst expectations of $0.07 (42.9% miss)
- Adjusted EBITDA: $5.14 million vs analyst estimates of $5.67 million (7.2% margin, 9.3% miss)
- Revenue Guidance for Q2 CY2025 is $73 million at the midpoint, below analyst estimates of $75.71 million
- Operating Margin: 0.5%, down from 9.5% in the same quarter last year
- Market Capitalization: $351.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Vishay Precision’s Q1 Earnings Call
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John Franzreb (Sidoti) asked about the sustainability of the recent order recovery and whether the company’s revenue profile has bottomed; CFO Bill Clancy confirmed the company believes it has reached a trough, with a gradual upslope expected.
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John Franzreb (Sidoti) questioned the likelihood of cancellation for the $2 million in delayed KELK shipments; CEO Ziv Shoshani responded that cancellations are unlikely given the custom nature of these products.
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John Franzreb (Sidoti) inquired about the timing and nature of the $5 million in targeted cost savings; Shoshani clarified most savings will be realized in cost of goods sold by year end, driven by material cost reductions and process improvements.
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Griffin Boss (B. Riley Securities) sought details on the magnitude and timing of CapEx for 2025; Shoshani indicated most capital expenditures will occur in the second half of the year due to longer lead times for equipment.
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Griffin Boss (B. Riley Securities) probed the scale of opportunity in humanoid robotics; Shoshani shared that each robot contains tens of sensors, with VPG’s value per robot ranging from $500 to $1,200, and further orders anticipated later this year.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be closely monitoring (1) the resolution and recognition of delayed KELK product shipments, (2) the pace of order recovery across test and measurement, robotics, and transportation markets, and (3) the realization and impact of cost reduction initiatives on margins. Progress on strategic M&A and expansion into new applications will also be important developments.
Vishay Precision currently trades at $27.99, up from $24.91 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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