VPG

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Chief Executive Officer and President - Ziv Shoshani Chief Financial Officer - Bill Clancy Investor Relations and Corporate Communications - Steve Cantor Operator: Good morning and welcome, everyone, to the VPG's Second Quarter 2026 Earnings Call. Today's conference is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Steve Cantor, Investor Relations and Corporate Communications. Please go ahead. Steve Cantor: Thank you, Audra. Good morning, everyone. Welcome to VPG's Second Quarter 2026 Earnings Conference Call. Our press release and slides have been posted on our website at vpgsensors.com. An audio recording of today's call will be available on the Internet for a limited time and can also be accessed on our website. Before beginning the call, today's remarks are governed by the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward-looking statements and there can be no assurance that such results, including the targets described in our updated operating model can be achieved. We'll -- for a discussion of the risks associated with VPG's operations, we encourage you to refer to our SEC filings, especially the Form 10-K for the year ended December 31, 2025 and our other recent SEC filings. On the call today are Ziv Shoshani, CEO and President; and Bill Clancy, CFO. And now I'll turn the call to Ziv for some prepared remarks. Please refer to Slide 3 of the quarterly presentation. Ziv? Ziv Shoshani: Thank you, Steve. I will begin with some commentary on our results and trends for the second quarter. Bill will provide financial details and our outlook for the third quarter of 2026. Moving to Slide 3. To summarize our second quarter results, we delivered another quarter of a strong order momentum, highlighting the continued success of our strategy to increase our exposure to secular growth markets. Orders were $95.5 million, driven by sustained strength in our Sensors segment and continued demand from AI-related markets. including semiconductor equipment, data center infrastructure and aerospace and defense applications. We generated $11.6 million in bookings from our business development initiatives in the second quarter and $21.6 million in the first half of the year. This puts us on track to reach our goal of $45 million for the year. As a result, our consolidated book-to-bill ratio was 1.14, marking our seventh consecutive quarter at or above 1.0. Within Sensors, book-to-bill was very strong 1.44, reflecting robust demand across our key growth markets. We continue to add manufacturing capacity and personnel to support future growth and address rising customer demand. During the quarter, we received an official vendor nomination letter from our initial humanoid robotics customer. This is an important milestone that positions us to support their expected production ramp beginning in the second half of 2026. Revenue was $83.9 million, essentially flat sequentially and up 12% year-over-year. Second quarter revenue was negatively impacted by the temporary delay in approximately $3 million of shipments at our KELK business. This delay was due to supply chain challenges that resulted from the implementation of a new ERP system. The ERP issue have been addressed and production has increased to a normalized level. We expect to ship the delayed orders by the end of the fourth quarter. Operating profit was down $200,000 sequentially as a result of unfavorable product mix and an unfavorable foreign exchange, which were partially offset by manufacturing efficiencies. FX remained a significant headwind, reducing operating profit by approximately $900,000 sequentially and $3.3 million compared with the prior year period. Our operational improvement initiatives are beginning to gain traction. We generated nearly $1 million of cost savings during the second quarter and remained on track to achieve approximately $6 million of savings this year. As a reminder, these actions represent the first phase of our 3-year plan to deliver approximately $20 million of cost reductions through manufacturing footprint optimization, increased automation and procurement efficiencies across our global supply chain. Most importantly, our strong order trends and backlog support our positive outlook for the year. We expect fiscal 2026 organic growth to exceed the 8% to 10% annual growth target outlined in our 3-year plan. I'll now review the performance by segment. Moving to Slide 4. Beginning with our Sensors segment, second quarter revenue of $33.4 million was approximately flat sequentially and grew 26% from a year ago. Our backlog remained at a very high level as we continued to hire manufacturing personnel to increase our output. Sequentially, the increase primarily reflected in higher sales of precision resistors in the Test and Measurement and AMS markets, which was partially offset by lower sales of strain gages in the Test and Measurement market. Bookings of $48.1 million remained robust, but grew 6% sequentially to an all-time quarterly record. This resulted in a book-to-bill ratio of 1.44, reflecting continued momentum in our largest growth markets. Demand continued to be driven by investments in AI-related infrastructure. We recorded strong orders for our precision resistors products sold to semiconductor OEM equipment makers as well as to semi device makers for their own custom test systems. Bookings for manufacturers of long-haul high-speed fiber optics transmission equipment remained elevated, supporting the build-out of data center infrastructure. We also saw continued good demand for avionics and defense applications, given sustained demand from both established and next-generation defense programs. Humanoid-related bookings were approximately $500,000 and sales were $320,000 in the second quarter. We received a vendor nomination letter from our initial humanoid developer customer. This marks an important step as the customer moves from a prototype development to early production ramp in the second half of fiscal 2026. It also reflects more than 2 years of engineering collaboration, product development, qualification work and operational reviews. Based on this customers' forecast demand, we are adding additional capacity. At the same time, we continue to make progress with other humanoid robotics developers and we are actively engaging additional potential customers. Our record orders, elevated backlog and expanding manufacturing capacity reinforce our confidence in the long-term growth trajectory of the sensors business. Moving to Slide 5. Turning to our Weighing Solutions segment. Second quarter revenue of $30.3 million was essentially even with the first quarter and 3% higher year-over-year. Sequentially, higher sales in the transportation and general industrial markets and OEM construction, which offset lower revenues in industrial weighing and in our other markets for precision ag and medical equipment. Orders of $28.6 million declined 13% sequentially from a strong first quarter to normalized level, resulting in a book-to-bill ratio of 0.94. Demand was stable but mixed across our markets for weighing solutions. We saw positive trends in consumer e-bike applications as well as continued strengthening in construction equipment in the U.S. and Europe. This was offset by lower orders in the transportation market, which was impacted by higher oil prices and softer demand in our industrial markets. Despite the flat sales, we grew our gross margin 300 basis points from the first quarter to 37.3%, reflecting cost reductions and a favorable product mix. Moving to Slide 6. Turning to Measurement Systems. Second quarter revenue decreased 3% sequentially but increased 5% from prior year. The sequential decrease was primarily due to lower sales in the AMS and transportation markets, which were partially offset by higher sales in the steel market. While reported revenue was impacted by $3 million of shipment delays associated with the ERP implementation, customer demand remained intact and the delayed orders remained in the backlog. As I indicated, our operations are now increasing production and we expect to complete the delayed shipments by the end of the year. Orders of approximately $19 million declined 22% sequentially. This reflected the timing of DSI customer projects. In addition, for our KELK business, the global steel market remained challenging despite solid demand in the U.S. from reshoring of steel capacity and growing opportunities in India. Nonetheless, our DTS business saw continued order growth in the second quarter, driven by strength in the aerospace and defense markets. We also were pleased to have DTS named Supplier of the Year by Automotive Testing Technology International, which is a leading global publication covering the auto test market. Moving to Slide 7. Our strategic initiatives continue to gain traction and order trends in our key growth markets remains positive. A core part of our strategy is increasing our exposure to attractive secular growth markets, including semiconductor equipment, AI infrastructure, fiber optics communication, aerospace and defense. In addition, we see early-stage physical AI applications starting to emerge. While these projects will take time to fully materialize, we are currently in the early technical discussions with several potential customers. Moving to Slide 8. As we expand our presence in the humanoid robotics market, we believe we are well positioned based on 6 core strengths. First, our foil-based strain gages technology provides a high level of accuracy and reliability required for advanced force sensing applications. Second, we have a scalable manufacturing platform capable of supporting volume production while maintaining quality and cost competitiveness. Third, our engineering team work closely with customers in the early development process, which helps us become embedded in the system designs and position us to participate as programs moves forward to commercialization. In addition, our ability to rapidly customize solution, our experience supporting mission-critical applications and our long-standing reputation for reliable execution provides an important competitive advantage. Combined with our financial and operational stability, these capabilities position us well to support customers as the humanoid robotics market evolves from prototype developments to large-scale production. Looking ahead, we remain focused on executing our strategy, expanding our presence in attractive growth markets, improving operational performance and creating sustainable long-term value for shareholders. Given the strength of our order trends and backlog, we are confident we can deliver organic revenue growth for 2026 above the target in our 3-year model. I will now turn it over to Bill Clancy. Bill? William Clancy: Thank you, Ziv. Referring to Slide 9 and the reconciliation tables of the slide deck, our second quarter 2026 revenues were $83.9 million. Gross margin was 38.6% in the second quarter, basically flat from the first quarter. Sequentially by segment, gross margin for Sensors of 31.5% decreased primarily due to unfavorable foreign currency exchange rates, higher material costs and wage increases as we hired additional personnel to increase our production output. Weighing Solutions gross margin of 37.3% increased from the first quarter, mainly due to cost reductions and favorable product mix. Gross margin for Measurement Systems of 52.5% was essentially the same as in the first quarter as manufacturing efficiencies offset lower volume and unfavorable product mix. Moving to Slide 10. Our second quarter operating margin was a negative 0.4%. Adjusted for restructuring costs, stock-based compensation and severance costs, adjusted operating margin was a positive 1.7%. Selling, general and administrative expense for the second quarter was $32 million or 38.1% of revenues, which was similar to Q1. As Ziv indicated, unfavorable foreign exchange rates were a significant headwind to operating margin, which impacted second quarter adjusted operating margin by $900,000 compared to the first quarter and $3.3 million from a year ago. Our GAAP loss was $1.7 million or a loss of $0.13 per diluted share. Adjusted net earnings was $586,000 or $0.04 diluted earnings per share adjusted for restructuring costs, stock-based compensation, severance costs and a $1.2 million effect of foreign currency exchange rates on our balance sheet. The GAAP tax rate for the second quarter of 2026 was 8%. And for 2026, we are assuming an operational tax rate of approximately 30%. Moving to Slide 11. Adjusted EBITDA was $5.5 million or 6.5% of revenue compared to $5.9 million or 7% of revenue in the first quarter. CapEx in the second quarter was $2 million and for the first half of 2026 was $5 million. For 2026, we are forecasting $10 million to $12 million for capital expenditures. Adjusted free cash flow was a negative $1.4 million for the second quarter, which improved from a negative $3.7 million in the first quarter. As of the end of the second quarter, our cash position was $75.7 million as we paid down $5 million of our outstanding debt, which will reduce our net interest cost by approximately $300,000 annually. With the paydown, our long-term debt was at $15.6 million, bringing our net cash position to $60 million. Regarding the outlook. For the third quarter of 2026, despite seasonal impacts in our European operations, we expect net revenue to be in the range of $84 million to $89 million. This assumes constant second fiscal quarter 2026 exchange rates and excludes expected third quarter tariff refunds to customers, which are profit neutral. In summary, we had another quarter of strong orders driven by strength in our AI-driven markets. We achieved a key milestone with our initial humanoid developer customer as we prepare for an anticipated ramp in the second half of 2026. And while we had some headwinds to revenue and earnings in Q2, we remain confident in the underlying momentum of our business and look forward to delivering double-digit revenue growth for the full year. With that, let's open the lines for questions. Thank you. Operator: [Operator Instructions] We'll take our first question from Jaeson Schmidt at Lake Street. Jaeson Schmidt: Just curious if you could expand a little bit on that humanoid pipeline, how many engagements you currently have and where that is compared to maybe where you were at the end of 2025? Ziv Shoshani: Yes, absolutely, Jaeson. So let me review the humanoid situation at the company. Let me start with the first customer. So as we said earlier, we have received the formal vendor nomination letter from our initial humanoid customer. At this point in time, the initial customer indicated the expectation of a production ramp-up in the second half of the year from tens of bots per week up to hundreds and even thousands per week by the end of the year. The company is ready and have already hired personnel, which are in training. We made the capital investments for the capacity and we have ordered the raw material. So based on the nomination letter, the company has -- is prepared for the initial volume and later the ramp-up regarding the first humanoid customer. The second humanoid customer has decided to reevaluate and refine its designs. So they are looking at the existing designs, while also we have been given an opportunity to quote new applications or new designs within the second humanoid customer. We continue to provide prototypes to the third and fourth humanoid customers. We have identified on our heat map around 150 potential humanoid suppliers, which we have started to act on and to provide some initial contacts. In some of them, we are in a more advanced contact. In some of them, we are in an early contact but we have a very structured plan how we should reach every and each one of them. Jaeson Schmidt: Got you. That's really helpful. And you might have answered what my second question was going to be on the capacity expansion. Is this primarily related to the demand pull you're seeing in this humanoid sector? Or is it broad-based demand amongst your other sensor customers as well? Ziv Shoshani: Well, the production expansion is mainly in the sensors. Now as you have seen, we have another very strong order intake. The production expansion is at this point, which, the information we have provided is related to AI infrastructure, data center, defense and I would say, all AI-related markets. The humanoid at this point in time, we have the plan in place. But at this point, the capacity is more designated to this initial customer who have provided us with an indication regarding their future volume for the second half of the year. Naturally, if there will be more opportunities, we are going to put in place more capacity and make more investments. But at this point, it's more designated for a specific discussion with a specific customer, regarding humanoid. Operator: We'll go next to Josh Nichols at B. Riley. Josh Nichols: Just to work through a little bit of math. I know there are a couple of items impacting the quarter. But if you strip out the FX, I think it works out, EBITDA would have been like $8.8 million roughly. And then you have to make some assumptions but if you also factor in the ERP delay of like $3 million, that could have got you to like $10-ish million of EBITDA and you expect those orders to be filled by the end of this year. Is that math right? Ziv Shoshani: So the math is, if you look quarter-over-quarter, the -- I would say that the FX effect is $900,000. Then we had a very unusual product volume mix based on higher contract pricing, which we don't expect to repeat itself. It was around $800,000 altogether, now $1.7 million. In addition, if you add the $3 million of our KELK business at a contribution margin of [ 1.5 ]. So the total comes to, I would say... William Clancy: Yes, close to $9 million. Josh Nichols: Got it. That's helpful. And then look, the sensors business has been exceptionally strong order activity, book-to-bill, right? You're setting records there. I just want to touch on -- when you just look at like the little bit of softness in weighing and measurement systems, is that something do you think it's going to stay around these levels or potential to improve in the back half? How should we think about the cadence for those 2 divisions? Ziv Shoshani: Sure. So let me start with Measurement Systems. We started Q1 with a fairly strong order rate. I think that for DSI, we had record orders. This is a project-driven business, which was fairly soft in the second quarter but we expect an improved order intake in the third quarter. Our DTS business has been enjoying good tailwind from the AMS market, which we expect it to continue. And our steel market is fairly soft, except the U.S. and India, which has been investing more. Regarding Weighing Solutions, we have seen fairly softness in the general weighing and in the precision ag, while an improved environment in construction. I do believe that based on the situation, we should see an improved second half of the year but I'm not sure if there are enough indication to show a much stronger improvement or I would say, a much more rapid order intake in the second half of the year. But I think that at this point in time, there is a higher likelihood for an improved business environment in the second half of the year in respect to the first half but not in a very significant way unless interest rates or inflation, interest rates would go down. And I think this would be one of the triggers that we would see more investments in the industrial sector. Josh Nichols: Got it. And just last question for me, just like housekeeping. I know it wouldn't be an impact to profit but just the cash balance, like could you quantify what you expected back in terms of like tariffs -- tariff reimbursement? Is that material? William Clancy: Yes. So Josh, for that, obviously, through the second quarter, we did not receive anything. In the third quarter, I mean material -- I mean, so far, we received roughly about $1.5 million. So that deemed not to be material. Obviously, that will be a reduction in revenues but we'll also have the reverse in COGS. So it will be profit neutral. Operator: [Operator Instructions] We'll take our next question from John Franzreb at Sidoti Company. John Franzreb: Can you talk a little bit about your ability to raise prices considering having higher input costs, both on the material and labor side? Ziv Shoshani: So let me first talk a little bit about the labor cost. So the labor cost is, we do have an increase in labor cost but part of that is also a learning curve due to the fact that we have to hire in a more extensive way and to get many more people skilled up with the higher capacity. Regarding material cost, yes, given some inflationary pressure, we have seen material cost increases. And I would say, given the fact that we -- beyond our contracts, we already started to put in place a few months ago, price increases in some selective product lines and products, which I believe we should start seeing the benefits in the P&L in the second half of the year. John Franzreb: That's good to hear. Can you give us a sense of magnitude? Ziv Shoshani: I think that it will be at this point in Q3, it could be in the hundreds of thousands of dollars and maybe slightly higher than that. Given the fact that we have a very large backlog, our backlog has increased by $10 million or by $11 million from first quarter to the second quarter to $135.8 million. Any price increases, we would be able to place only with new orders, not with existing backlog. Therefore, I would say that at this point in time, we will not -- given the large backlog, we will not be able to see a much more meaningful effect on the ASP increase in the P&L. But we did put in place a price increase program. John Franzreb: Got it. And regarding the deferred KELK order, is that going to be balanced between Q3 and Q4? Or is that totally a Q4 event? Ziv Shoshani: We are going to -- we are -- as we indicated, as we are increasing the capacity, we will see some improvements in Q3. But in Q4, we would see the larger output coming to the revenue level at KELK. John Franzreb: And Ziv, I'm curious, adding capacity to address the humanoid robotics market. Can you give us a sense of how much capacity you're adding and how much of incremental revenue you could address with the additional capacity? Ziv Shoshani: We -- currently, we are putting in place capacity based on our customers' projection. As I said, we made already a significant capital investments based on their projection and this -- we would be able to support with the investment that we made. I believe we would be able to support thousands of bots per week once we get the orders once we get the orders, yes. John Franzreb: Got you. And one last question on the cost savings. I think you said it was $1 million achieved in this quarter. Can you give me the year-to-date number and when the balance of the $6 million, is that -- what is that -- how does that play out in the second half of the year? Ziv Shoshani: Okay. In Q1, we achieved $600,000, second quarter $1 million, H1, $1.6 million and we are planning to complete the missing -- the other part to reach the $6 million in H2. Operator: [Operator Instructions] And with no further questions in the queue, I would like to turn the conference back over to Steve for closing remarks. Steve Cantor: Before concluding, I want to let everyone know that we will be participating in 2 upcoming virtual investor conferences: the Oppenheimer annual tech conference on August 13 and the Needham's semiconductor and semicap conference on August 20. You can contact me for more information or speak to your representative at those firms. We look forward to updating you on VPG next quarter. Have a good day. Thank you. Operator: And this concludes today's conference call. Thank you for your participation. You may now disconnect. 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Interested in Vishay Precision Group, Inc.? Here are five stocks we like better. Revenue rose 12% year over year to $83.9 million, while orders reached $95.5 million and the book-to-bill ratio was 1.14, marking the seventh consecutive quarter at or above 1.0. The Sensors segment was the key growth driver, with record bookings of $48.1 million and a 1.44 book-to-bill ratio, supported by demand from AI infrastructure, semiconductor equipment, fiber-optic communications, aerospace and defense. VPG also received a production nomination from its initial humanoid robotics customer, which could ramp to thousands of robots per week later in 2026. Profitability was pressured by foreign exchange, higher costs and a roughly $3 million KELK shipment delay, resulting in a $1.7 million GAAP loss. Management expects third-quarter revenue of $84 million to $89 million, delayed KELK shipments to contribute more significantly in the fourth quarter, and full-year organic growth above its 8%–10% target. 5 Robotics Stocks to Watch as Physical AI Builds Momentum Vishay Precision Group (NYSE:VPG) reported second-quarter 2026 revenue of $83.9 million, up 12% from a year earlier and essentially flat sequentially, as strong demand in its Sensors segment offset mixed conditions elsewhere in the business. The company said orders reached $95.5 million, producing a consolidated book-to-bill ratio of 1.14 and marking the seventh consecutive quarter at or above 1.0. CEO and President Ziv Shoshani said order momentum reflected the company’s strategy to increase exposure to secular growth markets, including semiconductor equipment, data-center infrastructure, fiber-optic communications, aerospace and defense. The company generated $11.6 million of bookings from business-development initiatives during the quarter and $21.6 million in the first half, placing it on track for its $45 million full-year objective. → No Hangover: Revisiting Microsoft One Week After Earnings Revenue was affected by a temporary delay of roughly $3 million in shipments at the KELK business within Measurement Systems. Shoshani said supply-chain challenges related to the rollout of a new enterprise resource planning system caused the delays. The company said the ERP issues have been addressed, production has returned to normalized levels, and it expects to ship the delayed orders by the end of the fourth quarter. The Sensors segment generated revenue of $33.4 million, approximately flat from the first quarter and up 26% year over year. Segment bookings rose 6% sequentially to a record $48.1 million, resulting in a book-to-bill ratio of 1.44. → MarketBeat Week in Review – 08/03 - 08/07 VPG attributed demand to AI-related infrastructure investments. Shoshani cited strong precision-resistor orders from semiconductor equipment manufacturers and semiconductor-device makers that use the products in custom test systems. Bookings from makers of long-haul, high-speed fiber-optic transmission equipment also remained elevated, while demand for avionics and defense applications continued. The company received a formal vendor nomination letter from its initial humanoid robotics customer during the quarter. According to Shoshani, the customer expects to begin a production ramp in the second half of 2026, potentially increasing from tens of robots per week to hundreds and then thousands per week by year-end. VPG has hired and trained personnel, made capital investments and ordered raw materials based on the customer’s projected demand, he said. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Humanoid-related bookings were approximately $500,000 during the second quarter, while sales totaled $320,000. Shoshani said VPG is also providing prototypes to third and fourth humanoid customers, while a second customer is reevaluating and refining its designs. The company has identified approximately 150 potential humanoid suppliers as part of its customer-development efforts. VPG said it is expanding Sensors manufacturing capacity and staffing to serve demand across AI infrastructure, data centers, defense and other AI-related markets. Capacity designated for the initial humanoid customer could support thousands of robots per week once orders are received, Shoshani said. Weighing Solutions revenue was $30.3 million, essentially unchanged sequentially and 3% higher than the prior-year period. Higher transportation and general-industrial sales, along with original equipment manufacturer construction demand, offset lower revenue from industrial weighing, precision agriculture and medical equipment markets. Orders in the segment declined 13% sequentially to $28.6 million, producing a 0.94 book-to-bill ratio. Shoshani said demand was stable but mixed, with positive trends in consumer e-bike applications and construction equipment in the U.S. and Europe. Those conditions were offset by lower transportation orders associated with higher oil prices and softer industrial demand. Despite flat revenue, Weighing Solutions gross margin rose 300 basis points sequentially to 37.3%, driven by cost reductions and favorable product mix. Measurement Systems revenue declined 3% sequentially but increased 5% year over year. The company said lower sales in aerospace, military and space, or AMS, and transportation markets were partially offset by higher steel-market sales. The KELK shipment delays remained in backlog, according to management. Orders in Measurement Systems were approximately $19 million, down 22% sequentially, which VPG attributed to the timing of DSI customer projects and continuing challenges in global steel markets. However, the company said its DTS business continued to see order growth from aerospace and defense markets. DTS was also named Supplier of the Year by Automotive Testing Technology International, Shoshani said. Second-quarter gross margin was 38.6%, essentially unchanged from the first quarter. Operating margin was negative 0.4%, while adjusted operating margin was 1.7% after restructuring costs, stock-based compensation and severance costs. CFO Bill Clancy said unfavorable foreign exchange rates reduced operating profit by approximately $900,000 sequentially and $3.3 million from the prior-year period. Sensors gross margin was 31.5%, pressured by foreign exchange, higher material costs and wage increases tied to additional hiring. Measurement Systems gross margin was 52.5%, with manufacturing efficiencies offsetting lower volume and unfavorable mix. VPG reported a GAAP loss of $1.7 million, or $0.13 per diluted share. Adjusted net earnings were $586,000, or $0.04 per diluted share. Adjusted EBITDA was $5.5 million, or 6.5% of revenue, compared with $5.9 million in the first quarter. The company generated nearly $1 million in second-quarter cost savings and $1.6 million in the first half. Management remains on track to achieve about $6 million in 2026 savings as part of a three-year plan targeting approximately $20 million in reductions through manufacturing footprint optimization, automation and procurement efficiencies. VPG ended the quarter with $75.7 million in cash after paying down $5 million of debt. Long-term debt stood at $15.6 million, leaving a net cash position of $60 million. Clancy said the debt repayment should reduce annual net interest expense by approximately $300,000. For the third quarter, VPG expects revenue of $84 million to $89 million, based on constant second-quarter exchange rates and excluding anticipated tariff refunds to customers that management said would be profit neutral. The company has received roughly $1.5 million in tariff reimbursements so far in the third quarter, Clancy said. Management said it expects some improvement in KELK output during the third quarter, with the larger contribution from delayed shipments expected in the fourth quarter. VPG expects full-year organic revenue growth to exceed the 8% to 10% annual target in its three-year operating model, with Clancy describing the outlook as double-digit revenue growth for 2026. Vishay Precision Group (NYSE: VPG) specializes in the design, manufacture and calibration of precision sensors, instrumentation and measurement systems used in a broad range of applications. Its product portfolio includes load cells, tension links, weighing modules, torque transducers, digital indicators and data acquisition systems. These solutions serve critical requirements for accuracy, reliability and repeatability in sectors such as industrial automation, test and measurement, medical devices, food and beverage processing, aerospace and defense. The company traces its roots to the sensor and measurement division of Vishay Intertechnology, Inc, from which it was spun off as an independent public company in March 2016. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vishay Precision Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Vishay Precision Group VPG reported second-quarter fiscal 2026 adjusted earnings of 4 cents per share, which missed the Zacks Consensus Estimate of 19 cents. The bottom line declined from adjusted earnings of 21 cents per share reported in the year-ago quarter. Quarterly revenues increased 11.7% year over year to $83.9 million. However, the top line missed the Zacks Earnings Estimate by 3.97%. Revenue growth was primarily driven by strength across key end markets, though approximately $3 million of shipments were delayed due to the implementation of a new ERP system in its steel-related systems business. Those delayed orders remain in the backlog and are expected to ship by year-end. Gross profit increased to $32.4 million from $30.6 million in the year-ago quarter. However, gross margin contracted 210 basis points to 38.6% due to unfavorable foreign exchange movements and product mix. Adjusted operating margin declined to 1.7% from 5.4% a year ago, while adjusted EBITDA was $5.5 million, representing a 6.5% margin. Vishay Precision Group, Inc. price-consensus-eps-surprise-chart | Vishay Precision Group, Inc. Quote Bookings totaled $95.5 million during the quarter, reflecting continued strength in semiconductor, data center, aerospace and defense markets. The company reported a book-to-bill ratio of 1.14, marking the seventh consecutive quarter at or above 1.0, while backlog expanded to $136 million, providing improved visibility for the second half of fiscal 2026. Business development orders reached $11.6 million, keeping the company on track toward its full-year target of $45 million. The Sensors segment remained the strongest performer, with revenues rising 26% year over year to $33.4 million and bookings climbing to a record $48.1 million, resulting in a record book-to-bill ratio of 1.44. Demand was fueled by AI-related semiconductor test, data center and fiber-optic applications. During the quarter, VPG received a vendor nomination from its initial humanoid robotics customer and booked approximately $500,000 of humanoid-related orders while shipping $320,000. Weighing Solutions revenues increased 3% year over year to $30.3 million, supported by transportation and general industrial demand, while Measurement Systems revenues grew 5% year over year to $20.2 million despite ERP-related shipment delays. Aerospace and defense demand remained solid. The company ended the quarter with cash and cash equivalents of $75.7 million compared with $87.4 million at the end of fiscal 2025. Long-term debt declined to $15.6 million in the second quarter from $20.6 million in the previous quarter as VPG repaid $5 million of debt during the quarter, reducing future interest expense. Total assets were $450.7 million. VPG’s cash from operating activities improved to an inflow of $0.3 million from an outflow of $0.6 million in the previous quarter. Adjusted free cash outflow narrowed to $1.4 million from $3.7 million in the first quarter, reflecting improved cash generation. Management expects fiscal 2026 organic revenue growth to exceed its long-term target range of 8-10%, supported by sustained demand across semiconductor equipment, fiber optics, aerospace and defense, and the anticipated production ramp of humanoid robotics in the second half of the year. The company also remains on track to deliver approximately $6 million of cost savings in fiscal 2026 as part of its three-year $20 million cost-reduction program. At present, VPG carries Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 123% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year. Shares of Applied Materials have jumped 107.9% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past 30 days, indicating a rise of 28.9% year over year. Analog Devices shares have surged 39.2% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 33.9% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vishay Precision Group, Inc. VPG used its second-quarter fiscal 2026 earnings call to emphasize record Sensors orders, AI-related demand and a humanoid robotics production ramp. Those indicators contrasted with an earnings miss and margin pressure. Executives said that full-year organic growth should exceed the 8-10% range in the three-year model, while outlining work on foreign exchange, product mix, ERP-related shipment delays and cost execution. CEO and president Ziv Shoshani said that orders reached $95.5 million, producing a 1.14 book-to-bill ratio. That marked the seventh consecutive quarter at or above 1.0. Shoshani said Sensors bookings rose 6% sequentially to a record $48.1 million, with book-to-bill at 1.44. Demand centered on precision resistors for semiconductor equipment, data centers, fiber optics, aerospace and defense. Business development initiatives generated $11.6 million of bookings in the quarter and $21.6 million in the first half. Shoshani said that VPG remained on track for its $45 million full-year target. Shoshani highlighted a vendor nomination from VPG’s initial humanoid robotics customer. It positions VPG for the customer’s production ramp in the second half of fiscal 2026. Humanoid bookings were about $500,000, and sales were $320,000. Shoshani said that VPG had hired personnel, made capital investments and ordered raw materials to support the program. A Lake Street Capital Markets analyst asked about the pipeline. Shoshani said that the first customer expects production to move from tens of robots per week toward hundreds and thousands by year-end, while VPG is also working with additional developers. Revenues rose 11.7% year over year to $83.9 million but missed the Zacks Consensus Estimate of $87.4 million. Adjusted earnings of $0.04 per share missed the consensus mark of $0.19. Vishay Precision Group, Inc. price-consensus-eps-surprise-chart | Vishay Precision Group, Inc. Quote Executive vice president and CFO William Clancy said that gross margin was 38.6% and adjusted operating margin was 1.7%. Foreign exchange reduced operating profit by $900,000 sequentially and $3.3 million year over year. A new ERP implementation delayed about $3 million of KELK shipments. Shoshani said that the issue had been addressed, with some recovery expected in the third fiscal quarter and a larger contribution in the fourth fiscal quarter. Clancy guided revenues for the third quarter of fiscal 2026 to $84-$89 million at constant second-quarter exchange rates. The range reflects European seasonality and excludes profit-neutral tariff refunds. Shoshani said fiscal 2026 organic revenue growth should exceed the 8% to 10% annual range in VPG’s three-year model. Clancy described the full-year expectation as double-digit revenue growth. A B. Riley analyst asked about softer trends outside Sensors. CEO Shoshani said that the second-half environment should improve for Weighing Solutions and Measurement Systems, but not sharply without lower interest rates. A Sidoti analyst asked how VPG would counter higher labor and material costs. CEO Shoshani said that selective price increases should contribute hundreds of thousands of dollars in the third quarter of fiscal 2026. The near-term benefit is constrained by a $135.8 million backlog because increases apply only to new orders. Shoshani said that backlog grew by about $10 million to $11 million sequentially. Cost reductions reached $1 million in the second quarter and $1.6 million in the first half. Shoshani stated that VPG plans to reach $6 million in fiscal 2026, the first stage of a three-year, $20 million program. CEO Shoshani and CFO Clancy centered the closing message on converting strong demand into higher output and profitability. Priorities include adding Sensors capacity, clearing KELK shipments and improving manufacturing efficiency. VPG’s direction remains anchored in AI infrastructure, aerospace and defense, and emerging physical AI applications. Pricing, cost savings and capacity utilization remain central to the operating plan. VPG carries a Zacks Rank #3 (Hold) at present. It has a Value Score of F, a Growth Score of F, a Momentum Score of C and a VGM Score of F, pairing a neutral Rank with weak value, growth and combined style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Style Score uses an A-to-F scale, with A and B representing the strongest profiles and C occupying the middle. VPG’s current mix lacks broad style strength, while the Zacks Rank can change as earnings estimates are revised after the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHESTERBROOK, Pa., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Vishay Precision Group, Inc. (NYSE: VPG), a leader in precision measurement and sensing technologies, today announced its results for its fiscal 2026 second quarter ended July 4, 2026. Second Fiscal Quarter Highlights (comparisons are to the comparable period a year ago): Net revenues of $83.9 million increased 11.7%. Gross profit margin was 38.6% as compared to 40.7% Adjusted gross profit margin* was 38.6%, as compared to 41.0% Operating margin was (0.4%) as compared to 3.6%. Adjusted operating margin* was 1.7%, as compared to 5.4%. Diluted net loss per share of $0.13 compared to diluted net earnings per share of $0.02. Adjusted diluted net earnings per share* of $0.04 compared to $0.21. Adjusted EBITDA* was $5.5 million with an adjusted EBITDA margin* of 6.5%. Ziv Shoshani, Chief Executive Officer of VPG, commented, “We delivered another quarter of strong order momentum, with bookings of $95.5 million and a book-to-bill ratio of 1.14, driven by record quarterly orders for our precision resistors serving AI-related semiconductor, data center, aerospace and defense applications. During the quarter, we received a vendor nomination letter from our initial humanoid robotics customer, positioning us to support their planned production ramp of next-generation humanoid robots in the second half of 2026. Supported by continuing strong demand trends in our key growth markets including expected humanoid bookings and a growing backlog, we believe we are positioned to deliver organic annual revenue growth in fiscal 2026 above the 8% to 10% range previously outlined in our three-year model.” The Company noted that its second-quarter revenue was impacted by approximately $3.0 million of delayed shipments in its steel-related systems business due to supply chain challenges resulting from implementing a new ERP system. Production at this facility is increasing, and these orders are in backlog with shipments expected to be completed by the end of the year. Mr. Shoshani added: "Our second-quarter profits were impacted by unfavorable foreign exchange movements, which reduced profits by $3.3 million compared with the prior-year period, and by $0.9 million sequentially. Our financial results were also affected by the delayed shipments and unfavorable product mix. We continued our strategic investments to support our growth initiatives while maintaining a disciplined focus on operational execution. We remain on track to deliver approximately $6 million of cost savings in 2026 as part of three-year goal of achieving $20 million in cost reductions." Second Fiscal Quarter and Six-Month Financial Trends:The Company's second fiscal quarter 2026 net loss attributable to VPG stockholders was $1.7 million, or $0.13 per diluted share, compared to net earnings of $0.3 million or $0.02 per diluted share, in the second fiscal quarter of 2025. The second-quarter operating loss included $3.3 million related to unfavorable currency exchange rates compared to the prior year. In the six fiscal months ended July 4, 2026, net loss attributable to VPG stockholders were $2.0 million or $0.15 per diluted share, compared to net loss of $0.7 million, or $0.05 per diluted share, in the six fiscal months ended June 28, 2025. The operating loss for the first six months of 2026 included $4.6 million related to unfavorable foreign currency exchange rates compared to the same period a year ago. The second fiscal quarter 2026 adjusted net earnings were $0.6 million, or $0.04 per adjusted diluted share*, compared to net earnings of $2.7 million or $0.21 per adjusted diluted share* in the second fiscal quarter of 2025. In the six fiscal months ended July 4, 2026, adjusted net earnings* were $1.5 million, or $0.11 per adjusted diluted share*, compared to net earnings of $3.6 million, or $0.28 per adjusted diluted share* in the six fiscal months ended June 28, 2025. Segment Performance:The Sensors segment revenue of $33.4 million in the second fiscal quarter of 2026 increased 25.8% from $26.6 million in the second fiscal quarter of 2025. Sequentially, revenue increased 0.3% compared to $33.3 million in the first fiscal quarter of 2026. The year-over-year increase in revenue was primarily attributable to higher sales of precision resistors in the Test and Measurement and AMS and higher sales of strain gage sensors in the AMS and Other markets. Sequentially, the increase in revenue primarily reflected higher sales of precision resistors in the Test & Measurement and AMS markets, which was mostly offset by lower sales of strain gages in the Test and Measurement market. Gross profit margin for the Sensors segment was 31.5% for the second fiscal quarter of 2026, which decreased from 32.0% in the second fiscal quarter of 2025 and decreased from 34.8% in the first fiscal quarter of 2026. Adjusted gross margin* in the second fiscal quarter of 2025 of 32.2% was adjusted for $0.1 million of start-up costs. The year-over-year decrease in gross profit margin was primarily due to unfavorable foreign currency exchange rates, which offset higher volume. The sequential decrease in gross profit margin was primarily due to unfavorable foreign currency exchange rates, higher materials costs and wage increases. The Weighing Solutions segment revenues of $30.3 million in the second fiscal quarter of 2026 increased 3.1% from $29.4 million in the second fiscal quarter of 2025. Sequentially, revenue increased 0.4% compared to $30.2 million in the first fiscal quarter of 2026. The year-over-year increase in revenue was mainly attributable to higher sales in the General Industrial market for process weighing applications. Sequentially, higher revenue in the Transportation market was offset by lower revenue in Other markets. Gross profit margin for the Weighing Solutions segment was 37.3% for the second fiscal quarter of 2026, which decreased from adjusted gross margin of 40.2% in the second fiscal quarter of 2025 and increased from 34.2% in the first fiscal quarter of 2026. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix and higher manufacturing costs, partially offset by higher volume. The sequential increase in gross profit margin primarily reflected cost reductions and favorable product mix. The Measurement Systems segment revenues of $20.2 million in the second fiscal quarter of 2026 increased 5.2% from $19.2 million in the second fiscal quarter of 2025. Sequentially, revenues decreased 3.1% compared to $20.8 million in the first fiscal quarter of 2026. The year-over-year increase was primarily attributable to higher revenue in the AMS and Steel markets, which offset lower sales in the Transportation market. Sequentially, the decrease in revenue was primarily due to lower sales in the AMS and Transportation markets which were partially offset by higher sales in the Steel market. Gross profit margin for the Measurement Systems segment was 52.5% for the second fiscal quarter of 2026, which decreased from 54.6% in the second fiscal quarter of 2025, and decreased from 52.6% in the first fiscal quarter of 2026. The year-over-year decrease in gross profit margin was primarily due to unfavorable product mix which offset higher volume. Second-quarter gross margin was essentially flat with the first quarter, as manufacturing efficiencies offset lower volume and unfavorable product mix. Near-Term Outlook“For the third fiscal quarter of 2026 at constant second fiscal quarter 2026 foreign currency exchange rates, despite seasonal impacts in our European operations, we expect net revenues to be in the range of $84 million to $89 million. Our guidance excludes third-quarter tariff refunds to customers which have no impact on profits,” said Mr. Shoshani. *Use of Non-GAAP Financial Information:Beginning in fiscal 2026, the Company revised its definition of certain non-GAAP financial measures to exclude share-based compensation expense in addition to the other items described below. This change was made in light of the Company’s evolving compensation structure following recent organizational changes, including the hiring of senior executives and the expansion of equity-based incentive programs to attract and retain key talent. Management believes that excluding share-based compensation expense in certain non-GAAP financial measures provides investors with additional insight into the Company’s core operating performance and enhanced understanding of business trends across reporting periods, including those in comparison to its main peer companies. Share-based compensation expense will continue to be reflected in the Company's GAAP financial results and will be set forth in a specific line item in the reconciliation table between GAAP and non-GAAP measures. Prior-period non-GAAP financial measures have been recast to conform to the current presentation. The Company defines “adjusted gross profit margin” as gross profit margin before start-up costs and share-based compensation expense. “Adjusted operating margin” is defined as operating margin before start-up costs, restructuring costs, severance costs and share-based compensation expense. “Adjusted net earnings” and “adjusted diluted net earnings per share” are defined as net earnings attributable to VPG stockholders before start-up costs, restructuring costs and severance costs, share-based compensation expense, foreign currency exchange gains and losses and associated tax effects. We define “Adjusted EBITDA” as earnings before interest, taxes, depreciation, and amortization, start-up costs, restructuring costs and severance costs, foreign currency exchange gains and losses and share-based compensation expense. “Adjusted free cash flow” for the second fiscal quarter of 2026 is defined as the amount of cash generated from operating activities ($0.3 million) in excess of capital expenditures ($(2.0) million), net of proceed, if any, from the sale of assets ($0.3 million). Management believes that these non-GAAP measures are useful to investors because each present what management views as our core operating results for the relevant period. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in VPG’s consolidated financial statements presented in our Annual Report on Form 10-K and Quarterly Reports on Forms 10-Q. Conference Call and Webcast:A conference call will be held on Wednesday, August 5, 2026 at 9:00 a.m. ET (8:00 a.m. CT). To access the conference call, interested parties may call 1-888-596-4144 or internationally +1-646-968-2525 and use passcode 6155497, or log on to the investor relations page of the VPG website at ir.vpgsensors.com. A replay will be available approximately one hour after the completion of the call by calling toll-free 1-800-770-2030 or internationally +1-609-800-9909 and by using passcode 6155497. The replay will also be available on the “Events” page of investor relations section of the VPG website at ir.vpgsensors.com. About VPG:Vishay Precision Group, Inc. (VPG) is a leader in precision measurement and sensing technologies. Our sensors, weighing solutions and measurement systems optimize and enhance our customers’ product performance across a broad array of markets to make our world safer, smarter, and more productive. To learn more, visit VPG at www.vpgsensors.com and follow us on LinkedIn. Forward-Looking Statements:From time to time, information provided by us, including, but not limited to, statements in this press release, or other statements made by or on our behalf, may contain or constitute “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; significant developments from the recent and potential changes in tariffs and trade regulation; impact of inflation; potential issues respecting the United States federal government debt ceiling; global labor and supply chain challenges; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; the inability to realize anticipated synergies and expansion possibilities; difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; political, economic, and health (including pandemics) instabilities; instability or disruption caused by military hostilities in the regions or countries in which we operate (including Israel); difficulties in implementing our cost reduction strategies, such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to achieve efficiencies; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosure of export control non-compliance; our ability to execute our corporate strategy and business continuity, operational and budget plans; and other factors affecting our operations, markets, products, services, and prices that are set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Contact:Steve CantorVishay Precision Group, [email protected] VISHAY PRECISION GROUP, INC.Consolidated Condensed Statements of Operations(Unaudited - In thousands, except per share amounts) VISHAY PRECISION GROUP, INC.Consolidated Condensed Statements of Operations(Unaudited - In thousands, except per share amounts) VISHAY PRECISION GROUP, INC.Consolidated Condensed Balance Sheets(In thousands) VISHAY PRECISION GROUP, INC.Consolidated Condensed Balance Sheets(In thousands) VISHAY PRECISION GROUP, INC.Consolidated Condensed Statements of Cash Flows(Unaudited - In thousands) VISHAY PRECISION GROUP, INC.Reconciliation of Consolidated Adjusted Gross Profit, Operating Income, Net Earnings Attributable to VPG Stockholders and Diluted Earnings Per Share(Unaudited - In thousands) (a) Start-up costs in 2025(b) Share-based compensation cost excluded for Non-GAAP results, effective beginning 2026, with prior period comparability(c) Impact of foreign currency exchange rates on assets and liabilities VISHAY PRECISION GROUP, INC.Reconciliation of Adjusted Gross Profit by segment(Unaudited - In thousands) VISHAY PRECISION GROUP, INC.Reconciliation of Adjusted EBITDA(Unaudited - In thousands) (a) Start-up costs in 2025(b) Share-based compensation cost excluded for Non-GAAP results, effective beginning 2026, with prior period comparability(c) Impact of foreign currency exchange rates on assets and liabilities

Vishay Precision Group, Inc. VPG is set to report second-quarter 2026 results before market open on Aug. 5. The Zacks Consensus Estimate for second-quarter earnings is pinned at 19 cents per share, indicating an 11.8% year-over-year increase. The consensus estimate for the bottom line has remained unchanged over the past 60 days. The Zacks Consensus Estimate for Vishay Precision’s second-quarter revenues is pegged at approximately $87.4 million, suggesting a 16.3% jump from the year-ago quarter’s sales of $75.2 million. Vishay Precision’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, the average surprise being 94.05%. Let’s see how things are shaping up for the upcoming quarterly results. Vishay Precision Group, Inc. price-eps-surprise | Vishay Precision Group, Inc. Quote Vishay Precision’s second-quarter performance is likely to have benefited from continued strength in orders. VPG exited the first quarter with a healthy book-to-bill ratio of 1.21, and management indicated during the earnings call that order momentum remained positive through the early part of the second quarter. Strong demand from semiconductor equipment, AI data centers, fiber-optic infrastructure, avionics, and military and space programs is likely to have supported revenue growth. The Sensors segment is anticipated to have remained the strongest performer. In the first quarter, the segment’s bookings reached the highest level since early 2023, driven by precision resistors used in AI chip manufacturing equipment, data centers and defense applications. Management also accelerated hiring to meet higher production requirements, suggesting confidence in sustained customer demand. Another potential growth driver may have been humanoid robotics. Vishay Precision generated roughly $600,000 of humanoid-related revenues during the first quarter and expected this figure to more than double in the second quarter. While still a small contributor, this business could have provided an incremental boost to Sensors revenues. The company also entered early discussions with a fourth humanoid robotics customer, expanding future opportunities. Weighing Solutions also appeared positioned for another steady quarter after reporting stronger demand from medical equipment, precision agriculture, transportation and industrial weighing markets, supported by a book-to-bill ratio above one. Measurement Systems could also have benefited from continued defense spending. Demand for ruggedized data acquisition systems used in military jet engine testing and hypersonic missile programs remained healthy, while aerospace projects such as NASA's Artemis II mission highlighted the segment's technology leadership. Despite stronger revenue prospects, profitability may have remained under pressure. During the first quarter, Vishay Precision incurred higher selling, general and administrative expenses because of increased incentive compensation and additional hiring. These investments are likely to have continued through the second quarter. Foreign exchange may have remained another challenge. During the last earnings call, management highlighted that unfavorable currency movements reduced first-quarter operating margin by approximately $800,000 sequentially and $1.3 million year over year. As the currency exchange rates remained highly volatile during the June quarter, margins could have faced pressure again. Our proven model does not conclusively predict an earnings beat for VPG this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. Vishay Precision currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases: SanDisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 2.8% over the past 30 days. Shares of SanDisk have soared 411.7% year to date (YTD). Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and sports a Zacks Rank #1. The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by a penny in the past 30 days. Shares of Western Digital have surged 216.2% YTD. MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +1.59% and carries a Zacks Rank #2. The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.94 per share, calling for a year-over-year jump of 66.1%. Earnings estimates for the quarter have been revised upward by a penny in the past seven days. Shares of MKS have rallied 86.1% YTD. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report Western Digital Corporation (WDC) : Free Stock Analysis Report Sandisk Corporation (SNDK) : Free Stock Analysis Report MKS Inc. (MKSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CTS (CTS) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.31%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $0.52 per share when it actually produced earnings of $0.62, delivering a surprise of +19.23%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CTS, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $144.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $135.31 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CTS shares have added about 40.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While CTS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CTS was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $148.69 million in revenues for the coming quarter and $2.43 on $571.09 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Components is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vishay Precision (VPG), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This precision sensors and systems producer is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vishay Precision's revenues are expected to be $87.41 million, up 16.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CTS Corporation (CTS) : Free Stock Analysis Report Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research