Semiconductor component maker Vishay Intertechnology Inc. (VSH), Tuesday reported a decline in profit for the fourth quarter, as revenues dropped and margins contracted. Nevertheless, the company shares are currently up five percent on the NYSE, with both earnings and revenues coming in ahead of Street estimates.
Vishay's revenues for the quarter declined to $530.6 million from $551.4 million prior year. Analysts polled by Thomson Reuters expected revenues of $520.8 million for the quarter.
Gross margin, or gross profit as a percentage of sales, declined to 20.5 percent from 22.8 percent last year. Operating margin declined to 4.1 percent from 6.1 percent last year.
Commenting on the results, Chief Executive Gerald Paul said, "As expected the fourth quarter 2012 was the weakest quarter of the year. But the order intake in the fourth quarter 2012 was higher than in the third quarter 2012 or in the fourth quarter 2011."
Malvern, Pennsylvania-based Vishay's fourth-quarter profit dropped to $21.0 million or $0.14 per share from $31.0 million or $0.19 per share last year.
Earnings, excluding one-time items, declined to $0.11 per share from $0.15 per share last year. However, earnings came in above analysts' consensus estimate of $0.08 per share for the quarter. Analysts' estimates typically exclude one-time items.
Looking forward to the first quarter, the company expects revenue of $520 million to $560 million. Analysts currently expect first-quarter revenues of $531.00 million for the quarter.
VSH is currently trading at $11.60, up $0.59 or 5.36%, on the NYSE.
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