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Ichor Holdings, Ltd. (ICHR)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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45.98-1.59 (-3.34%)
At close: 4:00PM EDT
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  • B
    Bobby
    Conference Call Highlights

    Overall very good and a very positive tone with strong guidance upward.

    Q2 Results:
    - Ninth straight quarter of sequential revenue growth, increases in gross margin, operating margin, and net income.
    - Second-quarter revenue grew 7% over Q1 to $282 million, up 27% from Q2 of 2020.
    - $0.90 per share in earnings for Q2 and $1.66 for the first half, which represents 57% growth in earnings per share on a 24% increase in revenues compared to the first half of 2020.
    - Gross margin for the quarter came in better than forecast at 16.8%, up 70 basis points from Q1 and up 280 basis points from Q2 of 2020.
    COVID-related costs continued to impact gross margins by about 50 basis points.
    - Q2 operating expenses were $16 million.
    - Operating margin of 11.2% improved 100 basis points over Q1 and 370 basis points over Q2 of 2020.
    - Interest expense for the quarter was $1.6 million, down from Q1 as a result of an overall lower effective interest rate and outstanding debt balance.
    - Strongest period of free cash flow generation in the company's history with $82 million generated in the last 12 months, equal to 8% of trailing 12-month revenues.
    - Generated over $13 million in cash from operations. After capex spend of $10 million, free cash flow was $3 million.
    - Cash and investments were $247 million, an increase of $4 million from last quarter.
    - Total debt declined by $2 million to $168 million.
    - The 3 key markets for our products are etch, deposition, and EUV lithography, all of which have been outpacing overall industry growth due to multiple technology drivers.
    - These advanced technology nodes, capital intensity is increasing and, in particular, are requiring more etch and deposition as well as an increasing use of EUV, all of which drives more fluid delivery systems.

    Q3 Guidance:
    - Halfway through 2021, the underlying demand for wafer fab equipment or WFE continues to be very robust and is expected to continue at these unprecedented levels for the foreseeable future.
    - WFE expectations for 2021 have again increased since our last earnings call, with expectations of growth in excess of 30% compared to last year.
    - Earnings guidance of $0.90 to $1.06 per share reflects similar gross margins as Q2.
    - Q3 revenue guidance is in the range of $290 million to $320 million or 8% sequential revenue growth at the midpoint.
    - Our third-quarter revenue guidance indicates our expectation for continued sequential growth above Q2 and year-over-year growth of 27% to 40% versus Q3 of last year.
    - Our Q3 operating expense forecast is $16.5 million.
    - Interest expense in Q3 will be around $1.5 million, our tax rate approx. 13%, and fully diluted share count to be approx. $29.4 million.
    - Forecast sequential quarterly growth for both Q3 and Q4, with continued strong momentum carrying in into 2022.
    - Expect capex to be around 3% of revenues for 2021.
    - Anticipate another quarter of growth for Q4.
  • B
    Bobby
    As with UCTT, ICHR will greatly benefit from the massively growing and expanding semiconductor industry. All while just trading with a forward pe of 11. Another cheap and great long term growth play right now.
    Bullish
  • A
    Alec
    Low volume today, this company has a great outlook
    Bullish
  • B
    Bobby
    Nice show of strength into earnings next week.
  • W
    Wolfgang
    The persistent low volume with downward draft is very odd....just hope they have enough working capital to fund expansion...but they took care of this in the spring...
  • T
    Terry
    ICHR smells good today!
  • W
    Wolfgang
    ASML makes all new high and Ichor is a suppliee....they try to keep this as close to 50....
  • W
    Wolfgang
    Something smells...are they deliberately running the stock down for another secondary offering...
  • S
    Slaphappy
    Had sold just over 56 not long ago. Looking attractive again. Surprising on a big up day for the nasdaq. Looks like I'll be back in this tomorrow or next week.
  • W
    Wolfgang
    The "cycle" certainly did not peak for ASML..adding on good volume...huge number of job oppenings @ Ichor...
  • W
    Wolfgang
    Chip equips got trashed the same day 16th when Semi projected North of $ 100 billion for 2022...up from 93 billion in 2021
  • W
    Wolfgang
    I own 25 k shares.....stock down 3.5 % on 75 k shares....
  • H
    HeylookitsHerbie
    ICHR is going to make me sweat.. .again. I've held ICHR for a while now, so while I hold, I sell call options against my shares. Well, the options I sold back in March expire tomorrow & have a SP of $55... almost in the money. This happens every time I sell calls. In March, the SP was $45 and I had to buy it back, in February it was $40 and I had to buy it back... I swear, the stock price moves based on my call options. Next time, I'll do us all a favor and sell July calls with a SP of $80 and happily let it get called away from me!
  • B
    BP
    New Street estimates have a $34 Price Target and revised 2020 EPS of $2.30. At $45 that's a forward P/E under 20. I think ICHR needs a breather from the recent run up in price, but should continue the strong momentum through next year. Holding to +$40
    Bullish
  • J
    Jim
    I listened to the Conference Call. Thought it was interesting they had $3,000,000 revenue from IAN this Quarter and stated they are expanding IAN’s market penetration through distribution of Talon and ICHR’s products to a “major OEM” in South Korea and expanding into the Japanese market. Further they stated they are capitalizing on their reputation for quality to introduce products from their acquisitions to ICHOR’s main customers. In other words, they are expanding their acquisitions’ customer base.
  • J
    J. J.
    June 13, Stifel 2018 Cross Sector Insight Conference ICHR said that they have used another $10M for share buy-back, so $25M used out of $50M
  • J
    Jim
    BREAKING: Ichor announces additional $50 million buyback.
  • M
    Mike S
    So far, so good. at 23.41 I'm green!
  • A
    Anonymous
    this stock is difficult to hold on to.
  • J
    Jim