Ichor Holdings Falls On In-Line Q3 Earnings Report
Chip-gear supplier Ichor Holdings (ICHR) saw its stock fall Friday after reporting in-line earnings with sales a hair below views for the third quarter.
XAutoplay: On | OffFremont, Calif.-based Ichor earned an adjusted 62 cents a share, up 82% year over year, on sales of $164.5 million, up 56%, in the quarter ended Sept. 29. Analysts expected EPS of 62 cents and sales of $165.2 million.
For the current quarter, Ichor expects to earn an adjusted 68 cents a share on sales of $180 million, based on the midpoint of its guidance. Wall Street was modeling 66 cents and $173.2 million.
In a news release, Ichor Chief Executive Tom Rohrs said the company’s revenue guidance shows that it expects accelerating growth.
Ichor shares were down 2.4%, near 29.10, in morning trading on the stock market today. Ichor hit a record high of 35.51 on Oct. 20.
IBD’S TAKE: Ichor is one of eight chip-industry players on the IBD 50 list of top-performing growth stocks.
Cowen analyst Karl Ackerman reiterated his outperform rating on Ichor and raised his price target to 40 from 38.
“This remains an incredibly inexpensive way to play the myriad of positive drivers for semiconductor production equipment,” he said in a report.
Ichor late Thursday also announced an acquisition to expand its prospects in the semiconductor-equipment market.
Ichor agreed to pay $130 million to buy Talon Innovations, a maker of high-precision machined parts used in leading-edge semiconductor tools. Ichor is financing the acquisition with $10 million of cash on hand and $120 million of incremental borrowing.
“Talon brings to Ichor the capability to deliver complex precision components to mission critical areas of semiconductor manufacturing,” Rohrs said in a statement. “It will enable Ichor to extend our fluid delivery product portfolio and deepen our collaboration with our customers’ design teams.”
Ichor makes gas- and chemical-delivery subsystems for chipmaking equipment.