Shares of Ichor Holdings Ltd. (ICHR) plummeted 32.11% in pre-market trading on Tuesday following a trifecta of negative news: disappointing third-quarter 2025 financial results, a weak fourth-quarter outlook, and the announcement of a new CEO. The semiconductor equipment supplier's performance has raised significant concerns among investors about its near-term prospects.
Ichor reported Q3 revenue of $239.3 million, slightly beating analyst expectations of $235.1 million. However, the company's bottom line fell far short of estimates. Adjusted earnings per share (EPS) came in at $0.07, missing the projected $0.12, while the company posted a substantial 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 is partly due to unexpected declines in non-semiconductor markets, particularly in the company's IMG (Ichor Manufacturing Group) business serving commercial space and aerospace and defense sectors. In a separate announcement, Ichor named Phil Barrows as its new Chief Executive Officer, a transition that comes at a critical time for the company as it navigates through industry headwinds. The combination of missed earnings, pessimistic guidance, and a leadership change appears to have shaken investor confidence, leading to the significant pre-market decline. Several analysts, including Stifel, D.A. Davidson, and B. Riley, have downgraded their ratings or cut their price targets for Ichor Holdings in response to these developments.
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