Investors in Vishay Intertechnology, Inc. (NYSE:VSH) had a good week, as its shares rose 5.5% to close at US$17.89 following the release of its third-quarter results. Revenues came in at US$735m, in line with estimates, while Vishay Intertechnology reported a statutory loss of US$0.14 per share, well short of prior analyst forecasts for a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Vishay Intertechnology's three analysts are now forecasting revenues of US$3.10b in 2025. This would be an okay 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 64% to US$1.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.25b and earnings per share (EPS) of US$1.43 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of US$21.00, suggesting the downgrades are not expected to have a long-term impact on Vishay Intertechnology's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Vishay Intertechnology analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$17.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vishay Intertechnology's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Vishay Intertechnology's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vishay Intertechnology is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vishay Intertechnology. 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 held steady at US$21.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Vishay Intertechnology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Vishay Intertechnology analysts - going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Vishay Intertechnology you should be aware of.

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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.