The power-electronics maker lifted its third-quarter sequential revenue guidance. The stock, already up 491% over 12 months, traded near $317 in the afternoon after opening at $330.
Vicor told investors its quarter went better than it had forecast. The stock had already priced in a lot.
The power-electronics company raised its guidance for third-quarter revenue growth from the second quarter to more than 30%, from more than 20% previously. The update came before Thursday's session, just after the quarter ended.
The shares opened at $330, up about 14.2% from Wednesday's close of $288.94. By early afternoon they were near $317.14, up about 9.8%, in a range of $310 to $331. That leaves them about 3.9% below the open, giving back roughly a third of the opening gain. Volume of about 1.04 million shares was above the 863,000-share daily average.
The run before it
Vicor's shares have risen about 491% over the past 12 months, close to a sixfold increase. Thursday's raise produced an opening jump and then a fade.
What the raise means
Moving a sequential growth floor from 20% to 30% for a quarter that has just closed means shipments in July, August and September ran well ahead of the company's own earlier forecast. Each additional 10 points of sequential growth adds a tenth of second-quarter revenue to the third-quarter total.
Two readings
One reading is that demand is accelerating faster than Vicor itself expected, and that a guide lifted at the very end of the quarter may point to momentum carrying into the fourth.
A second reading is that the fade from $330 shows how much was already in the price. With the stock up nearly sixfold in a year, investors may be treating good news as an exit point rather than a reason to add.
The report
Vicor's third-quarter results will show where revenue lands above the 30% floor and whether the company extends its outlook. Gross margin on the higher volume is the second number to watch.