Ultra Clean Holdings Inc.
) touched a new 52-week high of $14.84 during its trading session
on Mar 13, the prime impetus being the company's stellar
performance in fourth-quarter 2013. The new 52-week high reflects
an increase of over $14.71 reached on Mar 12.
Ultra Clean Holdings closed the trading on Mar 13 at $14.44,
reflecting a solid year-to-date return of 122.5%. The trading
volume for the session was 0.53 million shares. Further upside
potential exists for this Zacks Rank #1 (Strong Buy) electrical
manufacturing machinery company as can be deduced from its
earnings estimate revisions for 2014 and expected earnings growth
of 11.5% for the next 5 years.
Ultra Clean Holdings posted better-than-expected bottom-line
results in fourth-quarter 2013 on Feb 18, 2014. Since then, the
shares of the company have spiraled up 20.9%. Earnings per share
in the quarter were 26 cents, surpassing the Zacks Consensus
Estimate of 23 cents by 13.0%.
Revenues in the quarter increased 40.2% year over year to $126.0
million. Of the total revenues, roughly 93.7% comprised
Semiconductor revenues. Revenues generated from international
operations were 29.1%. Gross margin increased 430 basis points
year over year to 17.1%.
For first-quarter 2014, Ultra Clean Holdings anticipates revenues
to be within the $135-$140 million range and adjusted earnings
per share to be within 28-31 cents. At mid-points, the revenue
guidance reflects a sequential increase of 9.1% while the
earnings guidance is a 13.5% increase over the previous quarter.
Fourth-quarter 2013 results triggered upward revisions in
earnings estimates for Ultra Clean Holdings, as discussed below.
The earnings growth rate as well as a positive average earnings
surprise of 11.8% has made us optimistic about Ultra Clean
Holdings' performance in the coming quarters.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for Ultra
Clean Holdings has increased 33.8% to $1.07 for 2014. The
estimate also reflects year-over-year growth of 102.4%.
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Ultra Clean Holdings is a $413 million company operating in the
semiconductor industry. Other stocks worth considering in the
Tessera Technologies Inc.
Canadian Solar Inc.
). While Tessera Technologies and Canadian Solar carry a Zacks
Rank #1, SolarCity Corporation holds a Zacks Rank #2 (Buy).