Mixed Results and Flattish Guidance: Ichor Holdings (ICHR) Q1 2024 Earnings Report

TD Cowen's Krish Sankar raised their price target on Ichor Holdings (NASDAQ: ICHR) by 14.3% from $42 to $48 on May 8, 2024. The analyst maintained their Strong Buy rating on the stock. Sankar's positive outlook for Ichor Holdings comes after the company reported its Q1 2024 earnings the day before. Ichor Holdings, a company engaged in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment, delivered mixed results with flattish guidance. The company cited limited exposure to domestic Chinese semicap customers and headwinds from the SiC market undergoing demand digestion as factors impacting their performance.

For Q1 2024, Ichor Holdings reported a loss per share of $0.09, missing the Zacks Consensus Estimate of EPS of $0.01 and Q1 2023's EPS of $0.38. The company's revenue for the quarter was $201.38 million, beating the Zacks Consensus Estimate by 0.69% but falling short of Q1 2023's $225.87 million by 10.8%. Looking ahead to Q2 2024, management provided guidance of an EPS range of $(0.03) to $0.09 and revenue between $190 million and $205 million.

Despite the challenges faced by Ichor Holdings in Q1, CEO Jeff Andreson remains optimistic about the company's future prospects. He stated, "With expectations for industry demand in 2024 remaining relatively consistent year to date, we likewise have witnessed a stabilization in our revenue run rate around these levels." Andreson also highlighted the opportunities for revenue growth and expansion, stating, "We have multiple opportunities to expand our revenue potential and continue to add breadth and diversification to our customer base, all of which builds a strong story for Ichor’s revenue growth as the industry recovery accelerates."

Craig-Hallum's Christian Schwab also weighed in on Ichor Holdings on May 8, 2024. The analyst lowered their price target by 9.1%, from $55 to $50, while maintaining their Buy rating on the stock. It is worth noting that 83.3% of top-rated analysts currently rate Ichor Holdings as a Strong Buy or Buy, with 16.7% considering it a Hold. No analysts recommend or strongly recommend selling the stock.

Since the release of Ichor Holdings' Q1 2024 earnings report on May 7, 2024, the stock price has declined by 2.8%. However, on a year-over-year basis, the stock has shown significant growth, up 33.5%. During this period, ICHR has outperformed the S&P 500, which has risen by 25.4%.

TD Cowen analyst Krish Sankar, who raised the price target on Ichor Holdings, is recognized by WallStreetZen as one of the top 5% out of 4,577 Wall Street analysts. Sankar specializes in the Industrials, Utilities, and Technology sectors and has an impressive average return of 23% and a win rate of 72.3%.

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