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Ultra Clean (UCTT) to Report Q1 Earnings: What's in Store?

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Ultra Clean Holdings (UCTT - Free Report) is set to report first-quarter 2021 results on Apr 28.

For the quarter, Ultra Clean projects revenues between $375 million and $405 million. Adjusted earnings are estimated in the band of 80-93 cents per share.

The Zacks Consensus Estimate for quarterly revenues is pegged at $390.2 million, indicating growth of 21.6% from the figure reported in the year-ago quarter.

The consensus mark for first-quarter earnings is pegged at 83 cents per share, down a couple of cents over the past 30 days. The figure indicates a year-over-year surge of 59.6%.
 

Ultra Clean Holdings, Inc. Price and EPS Surprise

Ultra Clean Holdings, Inc. Price and EPS Surprise

Ultra Clean Holdings, Inc. price-eps-surprise | Ultra Clean Holdings, Inc. Quote

 

Notably, Ultra Clean’s earnings beat the Zacks Consensus Estimate in the trailing four quarters by an average of 30.8%.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

Ultra Clean’s first-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.

With an increase in wafer fabrication equipment 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  customers to support the production of leading next-gen devices. This is likely to have aided customer acquisition in the to-be-reported quarter.

Moreover, continued strength in foundry spending is expected to have driven top-line growth.

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 -2.02% 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 few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Etsy (ETSY - Free Report) has an Earnings ESP of +5.02% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2.

Citrix Systems has an Earnings ESP of +0.15% and a Zacks Rank #2.

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