News

What Happened?

Shares of power conversion and control solutions provider Vicor Corporation (NASDAQ:VICR) fell 23.6% in the afternoon session after the company reported underwhelming first-quarter 2025 results: its revenue and EPS fell short of Wall Street's estimates. Revenue grew 12% from a year ago but declined 2% from the prior quarter, pointing to slowing momentum in core product lines. Overall, this quarter could have been better.

The shares closed the day at $39.93, down 23.2% from previous close.

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What The Market Is Telling Us

Vicor’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. But moves this big are rare even for Vicor and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock gained 25.4% on the news that the company delivered exceptional fourth-quarter 2024 results, which blew past analysts' sales and earnings estimates. Sales grew 3.8% over the previous year, driven by higher royalty revenue, which nearly doubled from the prior year, offsetting a decline in product sales. Net income rose significantly, leading to an EPS beat, but sequentially, earnings dipped as operating costs grew. Zooming out, we think this was a good quarter with some key areas of upside.

Vicor is down 17% since the beginning of the year, and at $40 per share, it is trading 38.2% below its 52-week high of $64.71 from February 2025. Investors who bought $1,000 worth of Vicor’s shares 5 years ago would now be looking at an investment worth $752.30.

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