Personal Finance

Why Shares of Ichor Holdings Surged Today

A man using a piece of semiconductor manufacturing equipment.

What happened

Shares of semiconductor equipment and subsystem provider Ichor Holdings (NASDAQ: ICHR) jumped on Tuesday after the company released preliminary first-quarter results. Ichor also announced that existing shareholders planned to sell 4.5 million shares in a public offering, but the stock still closed up 10.4%.

So what

Ichor expects to produce first-quarter revenue of $148.7 million, toward the high end of its previous guidance range of $140 million to $150 million. GAAP net income of $13.0 million is expected, along with non-GAAP net income of $14.6 million. That works out to non-GAAP EPS of $0.57, compared to the previous guidance range of $0.52 to $0.58.

A man using a piece of semiconductor manufacturing equipment.

Image source: Ichor Holdings.

In addition to providing first-quarter numbers, Ichor provided revenue guidance for the second quarter. The company expects to produce revenue between $152 million and $162 million, up 5.6% compared to the first quarter at the midpoint.

Ichor will report its full first-quarter results after the market closes on May 11.

Now what

With both revenue and non-GAAP EPS coming in at the high end of Ichor's guidance ranges, investors pushed up the stock on Tuesday. Ichor went public in December at $9 per share, and the stock is now more than 130% above that level. While the semiconductor equipment business is cyclical, it's clear that investors like what they see.

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Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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