There's been a notable change in appetite for Vishay Precision Group, Inc. (NYSE:VPG) shares in the week since its quarterly report, with the stock down 19% to US$44.21. It looks like a pretty bad result, all things considered. Although revenues of US$85m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 54% to hit US$0.04 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Vishay Precision Group's three analysts is for revenues of US$370.8m in 2027. This would reflect a notable 11% increase on its revenue over the past 12 months. Earnings are expected to improve, with Vishay Precision Group forecast to report a statutory profit of US$1.62 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$370.8m and earnings per share (EPS) of US$1.62 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Vishay Precision Group
There were no changes to revenue or earnings estimates or the price target of US$93.33, suggesting that the company has met expectations in its recent result. 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 Precision Group analyst has a price target of US$105 per share, while the most pessimistic values it at US$77.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Vishay Precision Group shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Vishay Precision Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.7% annualised growth until the end of 2027. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. Although Vishay Precision Group's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Vishay Precision Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vishay Precision Group going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - Vishay Precision Group has 1 warning sign we think you should be aware of.
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