Why Vicor Stock Crashed 19% Today
Shares of electronic power components-maker Vicor (NASDAQ: VICR) plunged 19.2% through 11:30 a.m. ET Friday after the company reported a big earnings miss last night.
Analysts had forecast Vicor would earn $0.33 per share in its fourth and final quarter of 2023, nearly doubling last year's $0.18 Q4 2022 profit. Now, the good news is that profits did increase for the quarter. But when the final numbers came out last night, it turned out Vicor grew its earnings by only one single penny, to $0.19 per share -- much less than the growth expected.
Again, the news could have been worse. Vicor's Q4 sales declined more than 12% year over year, so the company logically should have suffered a profits decline rather than an increase -- even of just $0.01 per share. Vicor, however, was able to expand its profit margin on the revenue that it did collect, with gross margins rising 450 basis points to 51.1%. The company also cut its selling, general, and administrative expenses in the quarter, even as it increased spending on research and development slightly, helping to further boost profitability on the bottom line.
Source Fool.com
Vicor Corp. Stock
With 2 Buy predictions and 2 Sell predictions the community is currently undecided on Vicor Corp..
With a target price of 70 € there is potential for a 128.83% increase which would mean more than doubling the current price of 30.59 € for Vicor Corp..
