Shares of Ichor Holdings Ltd. (ICHR) experienced a dramatic 24.17% plunge during Monday's trading session following the release of its third-quarter 2025 financial results and fourth-quarter guidance. The semiconductor equipment supplier's mixed performance and pessimistic outlook have raised concerns among investors about the company's near-term prospects.
While Ichor reported Q3 revenue of $239.3 million, slightly beating analyst expectations of $235.1 million, the company's bottom line fell short. The adjusted earnings per share (EPS) of $0.07 missed the estimated $0.12, and the company posted a significant GAAP loss of $0.67 per share. The disappointing earnings were largely attributed to a low gross margin of 4.6% and an operating margin of -8.1%, reflecting the challenging market conditions facing the semiconductor industry.
Adding to investor concerns, Ichor provided a weak outlook for the fourth quarter, projecting revenues between $210 million and $230 million. This guidance suggests a sequential decline, with the company noting that it expects revenues to fall before a potential recovery in 2026. The softer outlook, combined with ongoing inventory impairment costs and market pressures, likely contributed to the sharp sell-off. In a separate announcement, Ichor named Phil Barros as its new Chief Executive Officer, a transition that comes at a critical time for the company as it navigates through industry headwinds.
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