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Why the Earnings Streak Will Continue for Ultra Clean Holdings (UCTT)

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Ultra Clean Holdings, Inc.UCTT , a firm in the Electronics - Manufacturing Machinery industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, UCTT has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, UCTT expected to post earnings of 42 cents per share, while it actually produced earnings of 47 cents per share, a beat of 11.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 50 cents per share, when it actually saw earnings of 62 cents per share instead, representing a 24% positive surprise.

Ultra Clean Holdings, Inc. Price and EPS Surprise

Ultra Clean Holdings, Inc. Price and EPS Surprise | Ultra Clean Holdings, Inc. Quote

Thanks in part to this history, recent estimates have been moving higher for Ultra Clean Holdings. In fact, the Earnings ESP for UCTT is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for UCTT, as the firm currently has a Zacks Earnings ESP of +1.17%, so another beat could be around the corner.

This is particularly true when you consider that UCTT has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank stocks here .

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that UCTT could see another beat at its next report, especially if recent trends are any guide.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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