Shares of Ichor Holdings Ltd. (ICHR) plummeted 22% in intraday trading on Tuesday, following the release of disappointing second-quarter financial results and the announcement of a CEO succession plan. The company, which provides critical fluid delivery subsystems for semiconductor capital equipment, faced a double blow that significantly shook investor confidence.

Ichor's second-quarter performance fell well short of expectations, with adjusted earnings per share coming in at $0.03, significantly missing the analyst consensus estimate of $0.14. This represents a 40% decrease from the same period last year. While the company's quarterly sales of $240.3 million beat estimates, showing an 18.3% year-over-year increase, the bottom line suffered with a negative operating margin of 2% and a net loss of $9.408 million. The weak profitability metrics highlight the challenges Ichor faces in the current semiconductor industry environment.

Adding to investor concerns, Ichor announced a CEO transition plan. Current CEO Jeff Andreson will remain in his position until a successor is appointed, after which he will serve as Executive Advisor until August 2026. The Board of Directors has initiated a search for a new CEO, introducing an element of uncertainty to the company's leadership at a crucial time. This transition, coupled with the disappointing financial results, appears to have sparked a significant sell-off in Ichor's stock as investors reassess the company's near-term prospects and long-term strategy in the face of these developments.