Shares of Ichor Holdings Ltd. (ICHR) plummeted 29.84% in pre-market trading on Tuesday, following a double blow 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 significant loss of investor confidence due to these developments.

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 steep 78.87% decrease from the same period last year. Despite quarterly sales of $240.3 million beating estimates and 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. These 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. In response to these developments, several analysts have downgraded their outlook on Ichor. B. Riley downgraded the stock to Neutral from Buy and adjusted its price target to $18 from $30. Other firms, including Oppenheimer, Stifel, and D.A. Davidson, have also cut their price targets, reflecting growing concerns about Ichor's near-term prospects and long-term strategy in the face of these challenges.