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Ultra Clean (UCTT) to Report Q4 Earnings: What's in Store?
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Ultra Clean Holdings (UCTT - Free Report) is set to report fourth-quarter 2020 results on Feb 17.
For the quarter, the company expects revenues and non-GAAP earnings above the mid-point of the earlier guidance, which was in the $345-$375 million and 63-77 cents per share band, respectively.
The Zacks Consensus Estimate for quarterly revenues is pegged at $365.4 million, indicating growth of 27.6% from the figure reported in the year-ago quarter.
The consensus mark for fourth-quarter earnings has been unrevised at 70 cents per share over the past 30 days. The figure indicates a year-over-year surge of 112.1%.
Notably, Ultra Clean’s earnings beat the Zacks Consensus Estimate in the trailing four quarters by an average of 34.9%.
Let’s see how things have shaped up prior to this announcement.
Ultra Clean’s fourth-quarter performance is anticipated to have benefited from its robust portfolio of diverse offerings that has positioned it well to capitalize on the growing demand for technology that supports 5G wireless, high-performance cloud computing, IoT and AI.
Steady demand for the company’s semiconductor products and services, led by solid traction in the semiconductor market, is likely to have been a key growth driver.
Notably, in the third quarter, Semiconductor Products and Solutions revenues surged 47.2% to $294.4 million and Semiconductor Services Business revenues jumped 26.9% to $68.9 million, year over year. This strong momentum is likely to have continued in the fourth quarter as well.
With an increase in wafer fabrication equipment (WFE) investment, the company’s cleaning and analytical services are likely to have become more critical to its integrated device manufacturer (IDM) and original equipment manufacturer (OEM) customers to support the production of leading next-gen devices. This is likely to have aided customer acquisition in the to-be-reported quarter.
Apart from this, Ultra Clean’s expanding global footprint is anticipated to have been a major positive. During the third quarter, it extended its presence into Malaysia through the opening of a manufacturing facility in the BatuKawan Industrial Park. The facility increases its total capacity by roughly 50% and improves the cost profile by reducing the cost of manufacturing.
Moreover, continued strength in foundry spending is expected to have driven top-line growth. Additionally, its OEM customers are likely to have shifted more toward outsourcing rather than in-house, which might have supported its DRAM business.
Key Q4 Developments
During the end of the fourth quarter, Ultra Clean announced that it has signed a definitive agreement to acquire Ham-Let (Israel-Canada), in an all-cash deal worth $348 million.
The buyout widens Ultra Clean’s semiconductor addressable market by more than $2 billion, along with expanding its customer base by adding new customers in the semiconductor fab infrastructure and sub-fab market.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Ultra Clean has an Earnings ESP of 0.00% and carries a Zacks Rank #2 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
3D Systems (DDD - Free Report) has an Earnings ESP of +29.63% and currently carries a Zacks Rank of 2.
HP (HPQ - Free Report) , another Zacks Rank #2 stock, has an Earnings ESP of +2.45%.
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Ultra Clean (UCTT) to Report Q4 Earnings: What's in Store?
Ultra Clean Holdings (UCTT - Free Report) is set to report fourth-quarter 2020 results on Feb 17.
For the quarter, the company expects revenues and non-GAAP earnings above the mid-point of the earlier guidance, which was in the $345-$375 million and 63-77 cents per share band, respectively.
The Zacks Consensus Estimate for quarterly revenues is pegged at $365.4 million, indicating growth of 27.6% from the figure reported in the year-ago quarter.
The consensus mark for fourth-quarter earnings has been unrevised at 70 cents per share over the past 30 days. The figure indicates a year-over-year surge of 112.1%.
Notably, Ultra Clean’s earnings beat the Zacks Consensus Estimate in the trailing four quarters by an average of 34.9%.
Let’s see how things have shaped up prior to this announcement.
Ultra Clean Holdings, Inc. Price and EPS Surprise
Ultra Clean Holdings, Inc. price-eps-surprise | Ultra Clean Holdings, Inc. Quote
Factors to Consider
Ultra Clean’s fourth-quarter performance is anticipated to have benefited from its robust portfolio of diverse offerings that has positioned it well to capitalize on the growing demand for technology that supports 5G wireless, high-performance cloud computing, IoT and AI.
Steady demand for the company’s semiconductor products and services, led by solid traction in the semiconductor market, is likely to have been a key growth driver.
Notably, in the third quarter, Semiconductor Products and Solutions revenues surged 47.2% to $294.4 million and Semiconductor Services Business revenues jumped 26.9% to $68.9 million, year over year. This strong momentum is likely to have continued in the fourth quarter as well.
With an increase in wafer fabrication equipment (WFE) investment, the company’s cleaning and analytical services are likely to have become more critical to its integrated device manufacturer (IDM) and original equipment manufacturer (OEM) customers to support the production of leading next-gen devices. This is likely to have aided customer acquisition in the to-be-reported quarter.
Apart from this, Ultra Clean’s expanding global footprint is anticipated to have been a major positive. During the third quarter, it extended its presence into Malaysia through the opening of a manufacturing facility in the BatuKawan Industrial Park. The facility increases its total capacity by roughly 50% and improves the cost profile by reducing the cost of manufacturing.
Moreover, continued strength in foundry spending is expected to have driven top-line growth. Additionally, its OEM customers are likely to have shifted more toward outsourcing rather than in-house, which might have supported its DRAM business.
Key Q4 Developments
During the end of the fourth quarter, Ultra Clean announced that it has signed a definitive agreement to acquire Ham-Let (Israel-Canada), in an all-cash deal worth $348 million.
The buyout widens Ultra Clean’s semiconductor addressable market by more than $2 billion, along with expanding its customer base by adding new customers in the semiconductor fab infrastructure and sub-fab market.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Ultra Clean has an Earnings ESP of 0.00% and carries a Zacks Rank #2 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
United States Cellular Corporation (USM - Free Report) has an Earnings ESP of +342.11% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D Systems (DDD - Free Report) has an Earnings ESP of +29.63% and currently carries a Zacks Rank of 2.
HP (HPQ - Free Report) , another Zacks Rank #2 stock, has an Earnings ESP of +2.45%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>