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Aggressive Growth

Ultratech, Inc. (UTEK - Snapshot Report) analysts are raising expectations after the recent earnings surprise. A healthy balance sheet and optimistic outlook should be enough to propel this Zacks #1 Rank (Strong Buy) even higher.

Company Description

Ultratech makes photolithography and laser processing equipment for semiconductor makers.

Top Line Jumps 64%

In Ultratech's Jan. 27 fourth-quarter 2010 earnings release, the company showed net sales of $43.6 million which is 64% higher than a year ago. Net income came in at $6.3 million, more than 4 times the $1.4 million earned in the final period of 2009.

Earnings per share was $0.25, a penny better than the Zacks Consensus Estimate. It was the fifth surprise in the past 6 quarters, after meeting expectations in the previous period.

Estimates on the Rise

Following the quarterly report analysts polled by Zacks began raising their estimates. The consensus is now up 8 cents to $1.27 for the current year.

Next year's forecasts are up 6 cents on average, to $1.61. If Ultratech can hit these targets, the annual growth rates will be 90% and 27%, respectively.

Healthy Balance Sheet

Ultratech ended 2010 with $184 million in cash and short-term investments providing it with plenty of flexibility moving forward. The company's current ratio is just under 6 times and it has virtually no long-term debt.

The Chart

Shares of UTEK had a rush of volatility after the earnings news but are back on the right track. After taking a breather in recent weeks, the stock should be ready for its next leg higher soon.

Ultratech, Inc.  - ticker UTEK>

 
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Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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