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Ultra Clean Holdings Stock Before Q3 Earnings: To Buy or Not to Buy?

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Ultra Clean Holdings (UCTT - Free Report) is set to report its third-quarter 2024 results on Oct. 28.

UCTT expects third-quarter 2024 earnings between 22 cents and 42 cents per share. Revenues are anticipated between $490 million and $540 million.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 36 cents per share over the past seven days. UCTT reported earnings of 4 cents in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The consensus mark for third-quarter revenues is pegged at $516.2 million, indicating an increase of 18.67% from the figure reported in the year-ago quarter.

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

Let’s see how things have shaped up for the upcoming announcement:

UCTT’s Q3 to Ride to Strong Product & Service Sales

UCTT’s continued strength in product and service sales across the globe, particularly the increased equipment spending in China, is expected to have driven revenues in the third quarter of 2024.

UCTT’s broad involvement in the semiconductor ecosystem, ranging from fab construction to supporting AI (artificial intelligence) innovation, positions it to greatly benefit from industry growth, especially with AI computing encouraging semiconductor content expansion.

Elevated demand for AI servers and devices is leading to investments in high-performance chips and advanced packaging. This is expected to have driven up UCTT’s third-quarter sales of semiconductor-related products. 

UCTT has also been making investments in capacity expansion, such as ramping up production at its Malaysia facility. It is, therefore, poised to support future growth, and may have also contributed to the increased third-quarter revenues.

UCTT has been focusing on site optimization, including automation and shifting production to lower-cost regions. As a result, operating expenses decreased to 10.8% of revenues in the second-quarter of 2024, compared with 11.4% in the first quarter of the year. Lower expenses are expected to have benefited UCTT’s margins in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Ultra Clean Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates they might possess the right combination of factors to exceed earnings expectations in their upcoming releases:

Arista Networks (ANET - Free Report) currently has an Earnings ESP of +0.96% and a Zacks Rank #2. You can see the complete list of today’s Zack’s #1 Rank stocks here.

ANET shares have gained 68.4% year to date. Arista Networks is set to report its third-quarter 2024 results on Nov. 7.

Onto Innovation (ONTO - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #2 at present.

Onto Innovation shares have gained 31.8% year to date. ONTO is set to report its third-quarter 2024 results on Oct. 31.

Garmin (GRMN - Free Report) currently has an Earnings ESP of +1.03% and has a Zacks Rank #2.

Garmin shares have gained 26.1% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.

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