Company Performance - Ichor Holdings reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.09 per share, compared to a loss of $0.06 per share a year ago, representing an earnings surprise of -11.11% [1] - The company posted revenues of $233.29 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.13%, and compared to year-ago revenues of $203.48 million [2] - Over the last four quarters, Ichor Holdings has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Outlook - Ichor Holdings shares have lost about 16.1% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the coming quarter is $0.23 on revenues of $243.5 million, and for the current fiscal year, it is $1.27 on revenues of $991.33 million [7] - The estimate revisions trend for Ichor Holdings is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Electronics - Semiconductors industry, to which Ichor Holdings belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Results - Ichor Holdings, Ltd. announced preliminary estimated financial results for Q4 2024, which are subject to change and not yet audited [7]. - The company has not filed its Annual Report on Form 10-K for fiscal year 2024, indicating that the preliminary results are management estimates and may differ from actual results [8]. - The preliminary financial results reflect management's current views and are subject to risks and uncertainties, emphasizing the need for caution in interpretation [8]. Conference Call - A webcast conference call is scheduled for February 4, 2025, at 1:30 p.m. PT to discuss the preliminary financial results [7]. Investor Communication - The company utilizes its "Investors" section on its website for disclosing material non-public information and compliance with Regulation FD [10].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Ichor Holdings, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Ichor Holdings is expected to report quarterly earnings of $0.08 per share, reflecting a year-over-year increase of +233.3% [3]. - Revenues are projected to be $233 million, representing a 14.5% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 17.78% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, suggesting no recent differing views from analysts [10]. Earnings Surprise Prediction - The Earnings ESP for Ichor Holdings is 0%, indicating no predictive advantage for an earnings beat [11]. - The stock currently holds a Zacks Rank of 4, complicating predictions for beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Ichor Holdings exceeded expectations by delivering earnings of $0.12 per share against an expected $0.11, resulting in a +9.09% surprise [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. - Betting on stocks expected to beat earnings can improve success odds, highlighting the importance of Earnings ESP and Zacks Rank [15]. Conclusion - Ichor Holdings does not currently appear to be a strong candidate for an earnings beat, suggesting investors should consider additional factors before making decisions [16].

Core Insights - Ichor Holdings (NASDAQ: ICHR) has shown strong performance post-pandemic, leveraging the period to grow and diversify its business [1] Group 1: Company Performance - The company emerged robustly from the pandemic, indicating effective management and strategic growth initiatives [1] - Ichor Holdings has focused on diversifying its operations, which may enhance its resilience against market fluctuations [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" provides insights into major corporate events, including earnings reports and M&A activities, which can present actionable investment opportunities [1] - The service covers approximately 10 significant events monthly, aiming to identify the best investment prospects [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission File Number: 001-37961 _______________________________________________________________________________________________________________ ...

Company Performance - Ichor Holdings reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.07 per share a year ago, representing an earnings surprise of 9.09% [1] - The company posted revenues of $211.14 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.98%, compared to year-ago revenues of $196.76 million [2] - Over the last four quarters, Ichor Holdings has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Market Performance - Ichor Holdings shares have declined approximately 18.7% since the beginning of the year, while the S&P 500 has gained 20.1% [3] - The current Zacks Rank for Ichor Holdings is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $216.8 million, and for the current fiscal year, it is $0.28 on revenues of $824.78 million [7] - The outlook for the Electronics - Semiconductors industry, where Ichor Holdings operates, is currently in the bottom 41% of over 250 Zacks industries, which may impact stock performance [8]

Shares of Ichor Holdings Ltd (ICHR, Financial) surged 3.75% in mid-day trading on Oct 2. The stock reached an intraday high of $31.49, before settling at $31.28, up from its previous close of $30.15. This places ICHR 32.63% below its 52-week high of $46.43 and 40.52% above its 52-week low of $22.26. Trading volume was 26,842 shares, 8.7% of the average daily volume of 307,734. Wall Street Analysts Forecast Based on the one-year price targets offered by 7 analysts, the average target price for Ichor Holdings ...

Company Performance - Ichor Holdings reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, and up from $0.02 per share a year ago, representing an earnings surprise of 66.67% [1] - The company posted revenues of $203.23 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.77%, compared to year-ago revenues of $185.01 million [2] - Over the last four quarters, Ichor Holdings has surpassed consensus revenue estimates four times, but has only beaten EPS estimates once [2] Stock Performance - Ichor Holdings shares have declined approximately 16.2% since the beginning of the year, while the S&P 500 has gained 8.7% [3] - The current Zacks Rank for Ichor Holdings is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $202.85 million, and for the current fiscal year, it is $0.28 on revenues of $816.03 million [7] - The outlook for the Electronics - Semiconductors industry, where Ichor Holdings operates, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] Industry Context - Broadcom Inc., another company in the same industry, is expected to report quarterly earnings of $1.20 per share, reflecting a year-over-year change of +14.3%, with revenues anticipated to be $12.9 billion, up 45.4% from the year-ago quarter [9][10]

Financial Performance - Revenue for Q2 2024 was $203.2 million, an increase from $201.4 million in Q1 2024 and $185.0 million in Q2 2023[2]. - Net loss for Q2 2024 was $5.1 million, improving from a net loss of $9.0 million in Q1 2024 and $20.7 million in Q2 2023[2][4]. - Non-GAAP net income was $1.8 million with a non-GAAP diluted EPS of $0.05, compared to a loss of $2.7 million and an EPS of $(0.09) in Q1 2024[5]. - Operating loss for the quarter was $(2.262) million, an improvement from $(3.741) million in the previous quarter[17]. - The company reported a net loss of $(5.112) million for the quarter, compared to a net loss of $(20.656) million in the same quarter last year, showing a significant reduction of 75.3%[17]. - Ichor Holdings reported a net loss of $5,112 thousand for the three months ended June 28, 2024, an improvement from a net loss of $8,989 thousand in the previous quarter[19]. - Ichor Holdings' diluted EPS for the three months ended June 28, 2024, was $(0.15), while the non-GAAP diluted EPS was $0.05[25]. Cash Flow and Liquidity - Free cash flow for Q2 2024 was $15 million, supported by net cash provided by operating activities of $17.5 million[1][7]. - Cash and cash equivalents at the end of Q2 2024 were $114.3 million, an increase of $12.2 million from the prior quarter[7]. - Cash at the end of the period was $114,349 thousand, an increase from $102,124 thousand at the end of the previous quarter[19]. - For the three months ended June 28, 2024, net cash provided by operating activities was $17,492 thousand, with capital expenditures of $2,847 thousand[28]. - For the six months ended June 28, 2024, net cash provided by operating activities was $22,296 thousand, with capital expenditures of $7,337 thousand[28]. Inventory and Assets - The company reported a decrease in inventories of $9.2 million and accounts receivable of $8.2 million during Q2 2024[7]. - Total current assets were $418.636 million, slightly down from $421.221 million in the previous quarter[14]. - Cash and cash equivalents increased to $114.349 million as of June 28, 2024, up from $79.955 million at the end of December 29, 2023[14]. - Total liabilities decreased to $252.813 million from $260.156 million in the previous quarter, reflecting a reduction of 2.6%[15]. - The company maintained goodwill at $335.402 million, unchanged from the previous reporting periods[14]. - Total shareholders' equity was $694.876 million, a slight decrease from $697.232 million in the previous quarter[14]. Margins and Profitability - Gross margin was 12.6% on a GAAP basis and 13.0% on a non-GAAP basis, compared to 11.4% and 13.9% respectively in the previous year[2][4]. - Gross profit for the quarter was $25.557 million, compared to $25.742 million in the previous year, indicating a slight decrease of 0.7%[17]. - U.S. GAAP gross profit for the three months ended June 28, 2024, was $25,557 thousand, representing a gross margin of 12.6%, up from 11.4% in the previous quarter[20]. - Non-GAAP gross profit for the same period was $26,434 thousand, with a non-GAAP gross margin of 13.0%[20]. - Ichor Holdings' U.S. GAAP operating loss for the three months ended June 28, 2024, was $(2,262) thousand, while the non-GAAP operating income was $4,495 thousand[22]. Future Outlook - The company expects Q3 2024 revenue to be in the range of $195 million to $210 million, with GAAP diluted EPS projected between $(0.17) and $(0.06)[6]. - The company is seeing signs of recovery in customer demand for wafer fab processing equipment, anticipating a stronger second half of 2024[1]. - New proprietary product introductions and customer qualifications are underway, contributing to positive momentum[1]. Research and Development - Research and development expenses for the quarter were $5.926 million, up from $5.188 million in the same quarter last year, indicating an increase of 14.2%[17]. Tax and Valuation - A valuation allowance of $11.1 million was recorded against U.S. federal and state deferred tax assets during the second quarter of 2023[26]. - The company recorded a tax expense on a GAAP and non-GAAP basis reflecting the valuation allowance from the first quarter of 2024 onward[26]. - The valuation allowance against U.S. deferred tax assets reflects an assessment of both positive and negative evidence[26]. - The company projected being in a three-year cumulative loss position in the U.S. by the end of 2023, impacting future taxable income assessments[26]. - The company incurred $0.5 million in severance costs related to global reduction-in-force programs for the three and six months ended June 28, 2024[26].

Financial Performance - Net sales for the three months ended March 29, 2024, were $201,383 thousand, a decrease of 10.8% from $225,870 thousand in the same period of 2023[61][69]. - Gross margin decreased to 11.4% in Q1 2024 from 14.7% in Q1 2023, primarily due to reduced factory utilization and unfavorable product mix[61][71]. - The company reported a net loss of $8,989 thousand for Q1 2024, compared to a net loss of $5 thousand in Q1 2023[61][66]. - Operating margin for Q1 2024 was (1.9)%, down from 2.1% in Q1 2023, reflecting the impact of reduced sales and increased costs[61][68]. - Non-GAAP gross profit decreased from $34,948 thousand in Q1 2023 to $24,518 thousand in Q1 2024, while non-GAAP gross margin decreased from 15.5% to 12.2%[82]. - Non-GAAP operating income decreased from $13,721 thousand in Q1 2023 to $2,432 thousand in Q1 2024, with non-GAAP operating margin declining from 6.1% to 1.2%[83]. - Non-GAAP net loss increased from $11,128 thousand in Q1 2023 to $2,712 thousand in Q1 2024, with non-GAAP diluted EPS decreasing from $0.38 to $(0.09)[86]. Expenses and Costs - Research and development expenses increased by 24.5% to $5,370 thousand in Q1 2024, driven by higher employee-related expenses and costs related to new product development[61][72]. - Cost of sales decreased by 7.4% to $178,389 thousand in Q1 2024, compared to $192,630 thousand in Q1 2023[61][70]. - Selling, general, and administrative expenses decreased by 4.7% to $19,219 thousand in Q1 2024, mainly due to reduced employee-related expenses[61][73]. - Amortization of intangible assets decreased by $1,820 thousand, or 45.9%, from $3,966 thousand in Q1 2023 to $2,146 thousand in Q1 2024 due to certain intangible assets becoming fully amortized[74]. - Net interest expense decreased by $454 thousand, or 10.0%, from $4,550 thousand in Q1 2023 to $4,096 thousand in Q1 2024, primarily due to a decrease in weighted average borrowings outstanding by $58,544 thousand, or 19.4%[76]. - Other expense, net decreased by $545 thousand, or 69.5%, from $784 thousand in Q1 2023 to $239 thousand in Q1 2024, primarily due to currency exchange rate fluctuations[77]. - Income tax expense increased by $1,448 thousand, from a benefit of $535 thousand in Q1 2023 to an expense of $913 thousand in Q1 2024, due to increased taxable income in foreign jurisdictions[78]. Cash Flow and Liquidity - Cash and cash equivalents increased by $22.2 million from the prior year, totaling $102.1 million as of March 29, 2024, primarily due to net proceeds of $136.7 million from a public offering[93]. - Cash provided by operating activities was $4.8 million in Q1 2024, compared to cash used of $10.9 million in Q1 2023, reflecting favorable changes in accounts payable and accrued liabilities[95]. - The company has $250.0 million available to draw on its revolving credit facility as of March 29, 2024, supporting its liquidity needs[92]. - Cash provided by financing activities included net proceeds of $136.7 million from the issuance of 3.8 million ordinary shares in March 2024, offset by net payments on credit facilities of $116.9 million[99]. - Total indebtedness as of March 29, 2024, was $133.1 million, with $7.5 million due within 12 months, and no material risks anticipated from changes in interest rates[104]. - A hypothetical 100 basis point change in the interest rate on outstanding debt would have resulted in a $0.3 million change to interest expense during the quarter, or $1.3 million on an annualized basis[104]. Market Conditions and Future Outlook - The semiconductor industry is experiencing a cyclical downturn, impacting customer demand and spending on capital equipment[62][63]. - The company initiated labor and cost reduction initiatives starting in Q4 2022, incurring severance charges of $0.9 million in Q1 2024[62]. - Future growth is anticipated as demand for semiconductors and capital equipment is expected to return, driven by the need for increased semiconductor production capacity[63]. Foreign Currency and Risk Management - Foreign currency exchange risks are mitigated as substantially all sales arrangements are priced in U.S. dollars, reducing exposure to material exchange rate fluctuations[102]. - Operating expenses may be subject to fluctuations due to foreign currency exchange rates, particularly in currencies such as the Singapore dollar and euro, but transaction gains and losses have not been material[103]. - The company has not engaged in foreign currency hedging transactions to date[103]. Accounting Policies and Estimates - Critical accounting estimates and assumptions are evaluated on an ongoing basis, with actual results potentially differing from estimates impacting future financial statements[100]. - Significant accounting policies impacting consolidated financial statements are detailed in the 2023 Annual Report on Form 10-K[101].