Vicor Corporation (NASDAQ: VICR) saw its stock price plummet 9.79% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report, which fell short of Wall Street expectations. The power conversion and control solutions provider reported lower-than-anticipated revenue and earnings per share, disappointing investors and analysts alike.

For the quarter ended March 31, 2025, Vicor reported revenue of $93.97 million, representing a 12% year-over-year increase but missing analyst estimates of $96.63 million. The company's earnings per share (EPS) came in at $0.06, significantly below the consensus expectation of $0.29 per share. This EPS figure was unchanged from the same quarter last year, indicating stagnant profitability despite revenue growth.

Commenting on the first-quarter performance, Vicor's Chief Executive Officer, Dr. Patrizio Vinciarelli, stated, "Revenues and gross margins declined sequentially, with reduced income from a licensee transitioning to a new generation of unlicensed products. Margin improvements await higher utilization of our ChiP fab and increased income from existing and future licensees." Dr. Vinciarelli also noted that licensing has been gaining traction with OEMs and hyper-scalers seeking to avoid potential import restrictions on infringing hardware.

The disappointing results have raised concerns about Vicor's ability to meet market expectations in the face of industry challenges. The company's operating margin declined to -0.2% from 1.3% in the same quarter last year, suggesting increased cost pressures. However, Vicor maintained a robust backlog of $171.7 million at the quarter's end, potentially indicating future growth opportunities.

Despite the setback, Wall Street analysts remain cautiously optimistic about Vicor's prospects, with a consensus recommendation of "hold" and a median 12-month price target of $60.00. The market's sharp negative reaction to the earnings miss underscores the high expectations investors had placed on Vicor's performance and highlights the challenges facing companies in the electrical components and equipment sector.