Ichor (NASDAQ: ICHR) reported Q4 EPS of $0.48, $0.02 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $189.34 million versus the consensus estimate of $188.97 million.

Highlights for the fourth quarter of 2019:

• Revenues of $189 million, at the high end of expectations;
• Net earnings of $0.35 per diluted share on a GAAP basis and $0.48 on a non-GAAP basis; and
• Cash flow from operations of $32 million and free cash flow of $28 million.

“We are very pleased to report a strong finish to 2019, with fourth quarter revenues at the upper end of our expectations and up 23% sequentially,” commented Jeff Andreson, chief executive officer of Ichor. “While the overall wafer fab equipment spending environment weakened in 2019 compared to a record 2018, our second-half momentum in terms of both revenue and earnings growth demonstrates our expanding share within our served markets and the resiliency and leverage of our variable operating model. Our sales in the second half of 2019 were up 24% from the first half, driven by a combination of our market share gains, an increase in shipments for EUV lithography, and by the beginning of an upturn in industry spending. Over the same period, earnings per share increased over 60%, demonstrating the strong operating leverage we can deliver as industry conditions rebound. We are encouraged by the continued strength of investments in the foundry and logic sectors, and the beginning of a recovery in memory capital spending – both driving an expected very strong first quarter for Ichor and optimism for significant growth in revenue and earnings in 2020.”

GUIDANCE:

Ichor sees Q1 2020 EPS of $0.64-$0.74, versus the consensus of $0.66. Ichor sees Q1 2020 revenue of $220-235 million, versus the consensus of $219.34 million.

• For the first quarter of 2020, we expect revenue to be in the range of $220 to $235 million. We expect GAAP diluted EPS to be in the range of $0.41 to $0.51 and non-GAAP adjusted diluted EPS to be in the range of $0.64 to $0.74.

For earnings history and earnings-related data on Ichor (ICHR) click here.