Shares of Vishay Intertechnology (VSH -1.31%) slumped on Tuesday after the discrete-semiconductor manufacturer reported its fourth-quarter results. Vishay missed analyst estimates across the board, sending the stock 11% lower by 12:20 p.m. EST.
Vishay reported fourth-quarter revenue of $674.5 million, up 18.2% year over year but about $3 million below the average analyst estimate. CEO Gerald Paul pointed to strong demand in nearly all of the company's market segments as the main driver behind the growth. The company's backlog is unusually high as lead times have increased as a result of this demand.
Non-GAAP earnings per share came in at $0.37, up from $0.18 in the prior-year period but $0.02 short of analyst expectations. Vishay posted a GAAP net loss of $1.23 per share due to charges related to the U.S Tax Cuts and Jobs Act.
The company expects to produce between $665 million and $705 million of revenue during the first quarter of 2018, up from $606 million in the prior-year period. This guidance is based on Vishay's capacity constraints.
Vishay is trying to take advantage of increased demand. Paul laid out the steps the company is taking: "Vishay continues to increase the manufacturing capacities of its key product lines, mainly by pulling forward certain programs of its 5-year Growth Plan. We are excited about the opportunities that accelerated market growth offers Vishay, especially in automotive and industrial applications."
Vishay's fourth quarter was positive on an absolute basis, but investors may be concerned about Vishay's inability to keep up with demand.