ICHR Earnings Prediction
The chart below shows how ICHR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ICHR sees a +2.11% change in stock price 10 days leading up to the earnings, and a +6.75% change 10 days following the report. On the earnings day itself, the stock moves by -0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
ICHR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
233.29M
14.65%
10.49%
Gross Margin
10.43%
23.58%
-13.37%
Operating Margin
-0.54%
-80.92%
200.00%
Net Margin
-1.69%
-71.11%
29.01%
EPS
-0.12
-70.00%
50.00%
No Data Available
ICHR Earnings Analysis
Ichor Holdings Ltd Corporation (ICHR.O) Earnings Conference Call
Positive
Q4 Revenue Surge: Q4 revenues reached $233 million, exceeding expectations and representing a 10% sequential increase and a 15% year-over-year growth.
Fiscal Year Revenue Increase: Total revenues for the fiscal year 2024 were $849 million, marking a 5% increase from 2023, with a notable 10% growth in the second half of the year.
Revenue Forecast Increase: The company raised the high end of its revenue forecast for Q1 2025, anticipating revenues between $235 million and $255 million, reflecting strong customer demand.
Gross Margin Improvement Projections: Gross margin is expected to improve significantly, with projections of reaching 15% to 16% by Q2 2025, driven by increased proprietary component content and operational efficiencies.
Debt Reduction Achievement: The company reduced total debt by $1.9 million during Q4, bringing the year-end total debt outstanding to $129 million, down from $250 million a year ago, improving the net debt coverage ratio to 1.6 times.
Negative
Gross Margin Decline: Gross margin declined to 12%, which was lower than expectations by about 300 basis points, primarily due to higher direct manufacturing labor costs that were not fully absorbed in Q4.
Cost Management Challenges: Operating expenses for Q4 were slightly below forecast at $22,300,000, indicating potential inefficiencies in cost management despite revenue growth.
Interest Expense Impact: Net interest expense was $1,700,000, while non-GAAP net income tax expense exceeded forecasts at $900,000, negatively impacting overall profitability.
Liquidity Decline Despite Cash Flow: Cash and equivalents at the end of the quarter totaled $109,000,000, an $8,000,000 decrease from Q3, reflecting a decline in liquidity despite positive cash flow generation.
Free Cash Flow Challenges: Free cash flow for the quarter was a use of $6,900,000, indicating challenges in cash management amidst rising operational costs.
ICHR FAQs
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ICHR Earning Call Sentiment
Earnings call transcript: Ichor Holdings Q4 2024 misses EPS forecast, stock rises
ICHR.O
-5.46%Positive
Despite some challenges, the earnings call highlights several positive factors: a 15% revenue increase YoY, optimistic 2025 guidance, strong demand in NAND and DRAM markets, and effective cost management. The company is reducing debt, has improved inventory management, and anticipates gross margin improvement. Although there are risks like higher labor costs and regulatory issues, these are expected to diminish. The market cap suggests a moderate reaction, leading to a positive sentiment for short-term stock price movement.
