Ichor Holdings Ltd (ICHR) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus.com10-10

Revenue: $203 million, up 10% year-over-year. Gross Margin: Improved by 80 basis points sequentially to 13%. Operating Income: $4.5 million, an 85% improvement from Q1. Net Income per Share (EPS): $...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIchor Holdings Ltd (ICHR) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 05:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ichor-holdings-ltd-ichr-q2-210745914.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $203 million, up 10% year-over-year.\nGross Margin: Improved by 80 basis points sequentially to 13%.\nOperating Income: $4.5 million, an 85% improvement from Q1.\nNet Income per Share (EPS): $...</p>\n\n<a href=\"https://finance.yahoo.com/news/ichor-holdings-ltd-ichr-q2-210745914.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ICHR","symbol_name":"Ichor Holdings Ltd.","start_time":0,"source_url":"https://finance.yahoo.com/news/ichor-holdings-ltd-ichr-q2-210745914.html","article_id":"2474620030","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/wxZTXwTAlANjcwU7qqVeOQ--~B/aD0yNTY7dz0yNTY7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/ba78383a79d5a4064caf1289f123c102"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474620030","pubTimestamp":1728508065,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Gross Margin: Improved by 80 basis points sequentially to 13%.Operating Income: $4.5 million, an 85% improvement from Q1.Net Interest Expense: $1.9 million, down from $4.1 million in Q1.Cash and Equivalents: $114 million, a $12 million increase from Q1.Free Cash Flow: $14.6 million after $2.8 million in capital expenditures.Inventory: Decreased by $9 million to $231 million; inventory turns increased to 3.0.Total Debt: Reduced to $130 million; net debt coverage ratio improved to 1.8 times.Q3 Revenue Guidance: $195 million to $210 million.Q3 Gross Margin Guidance: Expected to improve to 13.5% to 14.5%.GuruFocus has detected 2 Warning Signs with ICHR.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Ichor Holdings Ltd  reported solid second-quarter results with $203 million in sales, near the top end of their forecast.Ichor Holdings Ltd  generated $17.5 million in cash flow from operations, with a free cash flow of $14.6 million after cap","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ICHR":"Ichor Holdings Ltd."},"translate_title":"Ichor Holdings Ltd(ICHR)2024年第二季度收益看涨期权亮点：强劲的收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ICHR":1},"content_text":"Revenue: $203 million, up 10% year-over-year.\nGross Margin: Improved by 80 basis points sequentially to 13%.\nOperating Income: $4.5 million, an 85% improvement from Q1.\nNet Income per Share (EPS): $0.05.\nOperating Expenses: $21.9 million, below forecast.\nNet Interest Expense: $1.9 million, down from $4.1 million in Q1.\nCash and Equivalents: $114 million, a $12 million increase from Q1.\nCash Flow from Operations: $17.5 million.\nFree Cash Flow: $14.6 million after $2.8 million in capital expenditures.\nInventory: Decreased by $9 million to $231 million; inventory turns increased to 3.0.\nTotal Debt: Reduced to $130 million; net debt coverage ratio improved to 1.8 times.\nQ3 Revenue Guidance: $195 million to $210 million.\nQ3 Gross Margin Guidance: Expected to improve to 13.5% to 14.5%.\nQ3 EPS Guidance: $0.05 to $0.15.\n\n\nWarning! GuruFocus has detected 2 Warning Signs with ICHR.\n\nRelease Date: August 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nIchor Holdings Ltd (NASDAQ:ICHR) reported solid second-quarter results with $203 million in sales, near the top end of their forecast.\nThe company achieved an 85% improvement in operating income compared to the first quarter, driven by stronger gross margin performance.\nIchor Holdings Ltd (NASDAQ:ICHR) is seeing early signs of recovery in the wafer fab equipment market, with expectations for a stronger second half.\nThe company is making progress with its next-generation gas panel, which contains about 80% proprietary content, expected to significantly expand gross margins.\nIchor Holdings Ltd (NASDAQ:ICHR) generated $17.5 million in cash flow from operations, with a free cash flow of $14.6 million after capital expenditures.\n\n Negative Points \n\nThe emerging silicon carbide gas panel business is expected to be lower in the second half compared to the first half.\nGross margin improvement initiatives are necessary to drive profitability, indicating current margins are not optimal.\nThe company faces uncertainties in the timing of NAND WFE recovery, which is not expected to inflect until mid to late 2025.\nIchor Holdings Ltd (NASDAQ:ICHR) has not yet seen a surge in its component business, which remains muted compared to expectations.\nThe company is cautious about the impact of Intel's reduced CapEx guidance for 2025, which could affect growth projections.\n\n Q & A Highlights \nQ: Which advanced market are you most encouraged by between foundry and DRAM in terms of your second-half outlook? A: Jeffrey Andreson, CEO: We are seeing a bigger impact from high-bandwidth memory, particularly on the chemical side of the business. Foundry logic is holding up well, and as gate-all-around technology develops, we expect further upticks. Overall, high-bandwidth memory is currently more impactful.\nQ: Can you quantify the uptick in the second half? A: Jeffrey Andreson, CEO: While I don't have specific numbers, we expect a continued ramp from the first half to the back half, potentially up 10%. Year-over-year, the growth is significant, and Q4 is expected to be up over Q3.\nQ: Do you think 15% gross margin is achievable in Q4 with the progress in proprietary products? A: Jeffrey Andreson, CEO: At current revenue levels, we expect to be in the mid-15% range. This is due to recovery, mix, and progress with new passive products, including new gas panels, which are starting to contribute to revenue.\nQ: How do you view the impact of Intel's CapEx guidance on your growth profile for next year? A: Jeffrey Andreson, CEO: Intel's CapEx pullback could impact the outlook, but we haven't seen significant shifts for this year. The broader industry still anticipates growth next year, though the exact impact of Intel's guidance remains to be seen.\nQ: What are your thoughts on NAND WFE recovery timing? A: Jeffrey Andreson, CEO: We don't see an immediate inflection. The assumption is recovery will be driven by technology transitions, likely mid to late 2025. We hope for sooner recovery due to its etch and deposition intensity, which benefits us.\nQ: Can you provide more details on the EUV business outlook? A: Jeffrey Andreson, CEO: We expect sequential improvement in the second half of the year, with Q2 being the low point. The back half of the year should be stronger than the front half, aligning with broader industry commentary.\nQ: What is the incremental margin when returning to $250 million to $300 million in quarterly revenues? A: Jeffrey Andreson, CEO: Incremental margins could be around 20% to 22% at the high end, potentially north of 25% with new products. This depends on the mix and the integration of new products.\nQ: How long will it take for the next-generation gas panel with 80% proprietary content to be widely adopted? A: Jeffrey Andreson, CEO: Adoption will be a multiyear process, as it involves customer qualifications. We don't expect to be the sole source, but even limited penetration can significantly impact our revenue model.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474620030"}