Is VICR's Q1 2025 EPS forecast achievable?
4/5/2025 11:18am
**Vicor's Q1 2025 EPS forecast is achievable** based on the following points:
1. **Consistent Performance**: Vicor has a history of beating EPS estimates 75% of the time over the last year. This track record suggests that the company has a strong likelihood of meeting or exceeding earnings expectations in Q1 2025.
2. **Recent Financial Performance**: In the most recent quarter (Q4 2024), Vicor reported a Q4 operating income of $9.2 million, equating to a 9.6% operating margin. This indicates a strong operational foundation, which is a positive indicator for future earnings potential.
3. **Analyst Sentiment**: Despite a challenging year overall, as indicated by a decline in revenue and net income, the earnings call highlighted several positive developments, including significant growth in Advanced Products and improved gross margins. These factors suggest that while there may be some headwinds, there is also potential for growth that could support the EPS forecast.
4. **Market Expectations**: The consensus EPS Estimate for Q1 2025 is $0.23, which is slightly above the EPS of $0.181 reported in the most recent quarter (Q4 2024). This indicates that analysts are cautiously optimistic about Vicor's future earnings potential.
In conclusion, while there may be some challenges, the combination of Vicor's historical performance, recent positive developments, and market expectations suggest that the Q1 2025 EPS forecast of $0.23 is achievable.