Shares of Navitas Semiconductor Corporation (NVTS -3.06%) were soaring on Tuesday after the company reported second-quarter top- and bottom-line results that beat Wall Street's consensus estimates for the quarter. Part of the company's strong performance in the quarter is likely coming from its acquisition of GeneSiC Semiconductor, which Navitas said will be "immediately accretive" it its earnings.
The semiconductor stock was up 31% as of 2:20 p.m. ET.
Navitas reported a non-GAAP loss per share of $0.07 in the second quarter, which was a huge improvement from the loss of $0.28 in the year-ago quarter and better than analysts' consensus estimate of a loss of $0.09 per share.
The company's second-quarter sales increased 58% year over year to $8.6 million and also topped Wall Street's average estimate of $8.4 million.
Navitas announced that it had acquired GeneSiC Semiconductor, a profitable silicon carbide company that Navitas says will generate $25 million in sales this year.
"With the acquisition of GeneSiC, Navitas has become the industry's only pure-play, next-generation power semiconductor company," Navitas co-founder and CEO Gene Sheridan said in a press release.
Navitas said sales in the current quarter are expected to be in the range of $9 million to $11 million, which includes a partial quarter of revenue from GeneSiC. That estimate would represent a year-over-year revenue increase of 78.5%, at the midpoint of guidance.
The company also estimated that gross margin for the third quarter will be 40% at the midpoint of guidance, down slightly from 46% in the year-ago quarter.
With the company's strong results in the second quarter and its new acquisition expanding its semiconductor opportunities, it's not surprising to see Navitas stock rising today.