Brief Summary
- Wall Street’s expectations for Navitas (NASDAQ:NVTS) performance during the second quarter were surpassed.
- The purchase of GeneSiC Semiconductor was officially announced by the firm.
- Investors were pleased with the performance of the firm during the second quarter.
What’s the Story?
On Tuesday, shares of Navitas Semiconductor Corporation (NASDAQ:NVTS) surged after the firm disclosed second-quarter top-and bottom-line results above Wall Street’s consensus projections. The recent purchase of GeneSiC Semiconductor, which Navitas claims would be “immediately accretive” to the company’s profitability, undoubtedly contributed to the quarter’s outstanding performance.
As of 2:20 p.m. ET, the semiconductor stock had risen 31%.
What’s the Reason for Navitas Stock Gain?
In the second quarter, Navitas (NASDAQ:NVTS) reported a non-GAAP loss per share of $0.07, which was much better than the $0.28 recorded in the same period last year and better than the consensus loss per share projection of $0.09.
The company’s second-quarter revenues of $8.6 million were up 58% year-over-year and above the average Wall Street forecast of $8.4 million.
GeneSiC Semiconductor, a successful silicon carbide firm that Navitas estimates will bring in $25 million in revenue this year was recently purchased by Navitas.
Through the purchase of GeneSiC, it has become the only pure-play, next-generation power semiconductor firm in the industry, as stated by the company co-founder and CEO Gene Sheridan in a news statement.
What’s Next?
With GeneSiC contributing revenue for just part of the quarter, Navitas (NASDAQ:NVTS) expects current quarter revenues to be between $9 million and $11 million. At the midpoint of the projection, such an estimate would amount to a 78.5% rise in annualized sales.
The company also predicted that its gross margin would fall to 40% in the third quarter, from 46% in the same period a year earlier.
It’s hardly surprising that the stock is up today, given the company’s solid performance in the second quarter and the expansion of its semiconductor potential brought about by its recent purchase.
Featured Image: Megapixl @Rafaelhenriquepress
Author Shariq Khan 
