Ichor Holdings, Ltd. (NASDAQ:ICHR) Analysts Are Pretty Bullish On The Stock After Recent Results
Shareholders of Ichor Holdings, Ltd. (NASDAQ:ICHR) will be pleased this week, given that the stock price is up 14% to US$40.12 following its latest full-year results. Ichor Holdings reported US$914m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.42 beat expectations, being 2.3% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Ichor Holdings
Taking into account the latest results, the current consensus from Ichor Holdings' six analysts is for revenues of US$1.05b in 2021, which would reflect a solid 14% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 49% to US$2.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.04b and earnings per share (EPS) of US$2.10 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to US$49.14. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Ichor Holdings, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$38.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. Next year brings more of the same, according to the analysts, with revenue forecast to grow 14%, in line with its 15% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.8% per year. So it's pretty clear that Ichor Holdings is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Ichor Holdings analysts - going out to 2022, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Ichor Holdings (1 is a bit concerning) you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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