It's been a good week for Vicor Corporation (NASDAQ:VICR) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.7% to US$37.97. The results don't look great, especially considering that the analysts had been forecasting a profit and Vicor delivered a statutory loss of US$0.03 per share. Revenues of US$86m did beat expectations by 5.0% though. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the current consensus, from the three analysts covering Vicor, is for revenues of US$340.7m in 2024. This implies a noticeable 8.0% reduction in Vicor's revenue over the past 12 months. Per-share earnings are expected to jump 81% to US$0.39. Before this earnings report, the analysts had been forecasting revenues of US$333.9m and earnings per share (EPS) of US$0.32 in 2024. So it seems there's been a definite increase in optimism about Vicor's future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

As a result, it might be a surprise to see thatthe analysts have cut their price target 11% to US$36.50, which could suggest the forecast improvement in performance is not expected to last. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Vicor at US$38.00 per share, while the most bearish prices it at US$35.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 9.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Vicor is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Vicor following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Vicor's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vicor going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Vicor has 2 warning signs we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com