MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG) announced its fiscal 2024 second quarter results, revealing a decline in earnings and revenue.
Revenue for the quarter ended June 29, 2024, was $77.4 million, down 14.8% from the previous year. Gross profit margin decreased slightly to 41.9% from 42.6%. Operating margin also fell, reaching 7.6% compared to 13.0% last year. Net earnings per share were $0.34, a significant drop from $0.60 a year ago.
CEO Ziv Shoshani highlighted mixed market trends, saying, “Sales in the second quarter were 4.2% lower sequentially, reflecting continued mixed trends across our markets.” He noted improvements in some cyclical markets like Steel and consumer, but lower orders in Test & Measurement and Avionics, Military & Space sectors.
For the first six months of fiscal 2024, net earnings were $10.5 million, or $0.78 per diluted share, a decrease from $15.2 million, or $1.11 per share, in the same period last year.
Segment Performance
The Sensors segment saw revenue drop 20.4% year-over-year to $28.9 million. The Weighing Solutions segment reported a 12.2% decrease in revenue, totaling $27.4 million. Measurement Systems revenue fell 9.6%, reaching $21.0 million.
Near-Term Outlook
VPG expects third-quarter net revenues to be between $70 million and $78 million. Given the current market conditions and backlog, the outlook remains cautious.
A Hold Recommendation for Investors
Despite the revenue and earnings decline, VPG maintains a strong balance sheet and solid cash flow. The company’s focus on cost-reduction initiatives and strategic business development provides a foundation for long-term growth. For investors, VPG is a Hold, considering the current market trends and financial performance.
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