Why Navitas Semiconductor Stock Soared 16% Today

Shares of Navitas Semiconductor (NASDAQ: NVTS) -- one of the smaller semiconductor companies and a specialist in making chips used to power electronic devices -- were up 16.4% as of 10:20 a.m. ET Tuesday. The move higher came after the business exceeded expectations in its first-quarter 2023 earnings report and promised more of the same.

Analysts had low hopes for Navitas heading into Q1, predicting it would lose $0.08 per share on $12.3 million in revenue. The company cleared both of those low bars, however, reporting only a $0.07-per-share non-GAAP loss and sales of $13.4 million.  

First-quarter 2023 revenue literally doubled in comparison to the year-ago period, but not all of Navitas' results were so encouraging. Gross profit margin on that revenue, for example, declined by 3 full percentage points to 41%. Navitas cut spending on selling, general, and administrative expenses, but increased its spending on research and development.  

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Source Fool.com