Vicor Corporation's stock experienced a significant pre-market plunge of 12.60% on Friday. The sharp decline followed the release of the company's fourth-quarter financial results after the previous trading session.
The power components maker reported quarterly revenue of $107.26 million for the quarter ended December 31, which slightly missed the analyst consensus estimate of $107.78 million. This revenue shortfall occurred despite Vicor delivering strong earnings per share of $1.01, significantly exceeding the $0.44 estimate.
Market reaction to the revenue miss was immediate and negative, overshadowing other positive aspects of the earnings report including a substantial year-over-year revenue increase of 11.5%. The pre-market selloff reflects investor concerns about the company's revenue performance relative to expectations, even as the company beat earnings estimates by a wide margin.