Vishay Intertechnology, Inc. (NYSE:) recently enhanced the voltage rating of its 500 Power General Purpose-Screw Terminals (PGP-ST) series of aluminum screw-terminal capacitors.
These capacitors enable direct current (DC) linking in power conversion electronics, including motor drives, UPS systems, and solar inverters. The recent enhancement in voltage rating to 500V will pave the way for increased voltage headroom in electronics that have a voltage rating of 20 kW and more.
The company’s 500 PGP-ST series, available in different sizes, will boost the capacitor’s efficiency. Moreover, the new upgrade doubles the life of the capacitor to 5000 hours at 85 degree Celsius.
We believe Vishay is poised to gain traction with the new upgrade as it allows designers to re-use 380 V designs in 480V systems. Further, designers can conveniently upgrade larger solar inverter systems for 1000 V maximum input operation.
Market Growth Prospects
Capacitors devices have been gaining significant traction in recent times.
Per markets and markets, the high voltage capacitor market is expected to witness compounded annual growth rate (CAGR) of 7.8% to $218.8 million between 2015 and 2020. Moreover, there is signifiant demand for capacitors across China, India, Brazil, Mexico and other developing economies
Vishay is well poised to cater to this demand driven its robust product portfolio and key offerings. Notably, the company generated $116 million revenues (15% of total revenues) from the sale of this product line, up 22% year over year, in the last-reported quarter.
Vishay Intertechnology, Inc. Price and Consensus
Vishay Intertechnology, Inc. Price and Consensus | Vishay Intertechnology, Inc. Quote
Bottom Line
Vishay’s strengthening product portfolio is a key growth driver for the company. Moreover, enhanced and new products help the company in acquiring clients and will continue to aid its performance in all end markets.
Strategic acquisitions have played an important role in defining Vishay’s growth trajectory over the years. Vishay’s strategy of primarily acquiring high-margin niche businesses has benefited margins significantly, which is expected to continue in the long run.
Vishay has a mixed record of earnings surprises in recent quarters. Average positive earnings surprise for the trailing four quarters is 6.65%. In third-quarter 2018, the company’s earnings of 60 cents per share surpassed the Zacks Consensus Estimate by 6 cents.
The company is set to report its fourth-quarter fiscal 2018 earnings on Feb 5, before market open.
Zacks Rank & Stocks to Consider
Currently, Vishay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader computer and technology sector include SYNNEX Corporation (NYSE:) , Twitter, Inc. (NYSE:) and Cloudera, Inc. (NYSE:) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Expected long-term earnings growth rate for SYNNEX, Twitter and Cloudera is 0.73%, 22.1% and 8%, respectively.
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