Shares of Vicor Corporation (VICR) declined 3.8% in Thursday’s extended trading session after the manufacturer of modular power components reported disappointing third-quarter results.
Earnings of $0.29 per share missed the Street’s estimate of $0.44 per share. Additionally, revenues of $84.9 million missed the consensus estimate of $98.17 million.
Nonetheless, the company’s bottom line more than doubled on a year-over-year basis, while revenues surged 8.7%.
Gross margin stood at 50.4%, down 770 basis points from the same quarter last year. Notably, the book-to-bill ratio came in at 2.0 in the third quarter and the backlog was $296 million.
The CEO of Vicor, Dr. Patrizio Vinciarelli, said, “Semiconductor component shortages and capacity constraints caused Q3 revenues to fall short of expectations with a negative impact on margins. Improved semiconductor component availability and increased capacity should support a significant step up in Q4 revenues.”
Looking ahead, the company expects advanced products shipments to significantly exceed legacy bricks in the fourth quarter. Markedly, Vicor’s factory expansion is on track to be completed in the last quarter of 2021, with production equipment commencing in the first quarter of 2022. (See Vicor stock charts on TipRanks).
Recently, Craig-Hallum analyst Richard Shannon maintained a Buy rating on the stock and increased the price target to $200 (38.7% upside potential) from $150.
In a research note to investors, Shannon said that he considered Vicor as a top pick in earnings season and noted that the company was becoming an EV play, having two wins with multiple collaborations across a number of OEMs.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Vicor price target of $141.67 implies 1.8% downside potential. Shares have increased 75.7% over the past year.
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