Ichor Holdings falls on lower-than-expected revenue forecast

Ichor Holdings

11/01/2023 13:52

** Shares of chip equipment maker Ichor Holdings Ltd
 ICHR.O  down 11.02% at $26.40 in premarket trade
    ** Stock set to open at its lowest in more than a week if
losses hold
    ** Co expects Q4 revenue to be in the range of $300 mln-$302
mln, vs analysts' est of $326.5 mln - Refinitiv
    ** Says Q4 revenue outlook shows a sequential decline of
about 15%
    ** Weakness in wafer fab equipment, particularly those
related to memory spending, resulted in near-term demand
reduction - CEO Jeffrey Andreson
    ** "We are currently witnessing quarter-over-quarter revenue
declines that are modestly higher than what we were expecting a
couple of months ago" - Andreson
    ** Based on current visibility, co sees Q1 2023 revenue in a
range of $210 mln-$240 mln
    ** Three of four brokerages rate stock "buy" and one "hold";
median PT is $30.50 - Refinitiv
    ** Brokerage D.A. Davidson cuts PT on stock to $31 from $36
    ** Shares of Ichor up 10.3% so far this year, after falling
41.7% in 2022 
 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))