On November 7, 2023, Vishay Precision Group Inc (VPG, Financial) announced its third fiscal quarter results for the period ending September 30, 2023. The company reported a decrease in revenues and net earnings, despite an improvement in gross profit margin.
Financial Performance
VPG's revenues for Q3 2023 were $85.9 million, a decrease of 4.7% from the same period last year. The company's gross profit margin improved slightly to 41.9% from 41.4% a year ago. However, the operating margin decreased to 9.6% from 13.2% reported a year ago. Diluted net earnings per share also fell to $0.46 from $0.74 reported in Q3 2022.
CEO Commentary
Ziv Shoshani, Chief Executive Officer of VPG, commented on the results, stating,
Third-quarter revenue was within our guidance, as higher sales of Measurement Systems were offset by lower sales in our Sensors and Weighing Solutions segments. We achieved an adjusted EBITDA margin of 16.0%, and we generated solid levels of cash from operations and free cash flow."
Segment Performance
The Sensors segment revenue decreased by 14.1% year-over-year, while the Weighing Solutions segment revenue decreased by 7.7% compared to the same period last year. On the other hand, the Measurement Systems segment revenue increased by 17.2% year-over-year.
Financial Tables
The company's net earnings attributable to VPG stockholders for the third fiscal quarter ended September 30, 2023, were $6.3 million, or $0.46 per diluted share, compared to $10.1 million, or $0.74 per diluted share, in the third fiscal quarter ended October 1, 2022. In the nine fiscal months ended September 30, 2023, net earnings attributable to VPG stockholders were $21.5 million, or $1.57 per diluted share, compared to $27.2 million, or $1.99 per diluted share, in the nine fiscal months ended October 1, 2022.
Outlook
Given the current market conditions and uncertainties, VPG expects net revenues to be in the range of $77 million to $87 million for the fourth fiscal quarter of 2023, at constant third fiscal quarter 2023 foreign currency exchange rates.
Explore the complete 8-K earnings release (here) from Vishay Precision Group Inc for further details.
