Vicor Q3 revenue jumps 78.5% year over year on royalty boost, strong demand

Vicor

Tue 12:13

Overview
Modular power components maker's Q3 revenue rose 78.5% yr/yr and 37.5% sequentially
Q3 net income and EPS increased sharply yr/yr

Outlook
Vicor expects to expand capacity with two new sites to meet rising demand
Company anticipates broader adoption of 2nd GEN VPD modules by OEMs and hyperscalers
Company sees increased licensing interest due to ITC investigation into VPD patent infringement

Result Drivers
ROYALTY REVENUE GROWTH - Co reported significant increase in royalty revenue, contributing to overall revenue growth
MARGIN EXPANSION - Higher gross margin contributed to improved profitability
BACKLOG INCREASE - Co backlog rose both sequentially and yr/yr, indicating strong demand

Company press release: ID:nGNXb9TFfT

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$1.33
 
Q3 Net Income
 
$63.30 mln
 
Q3 Cash Flow From Operations
 
$69.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Vicor Corporation is $375.00, about 96.7% above its October 19 closing price of $190.68
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 85 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)