Ultra Clean Holdings Earnings: Here’s Why Investors Don’t Like These Results

Ultra Clean Holdings Inc. (NASDAQ:UCTT) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.55%.

Ultra Clean Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.94% to $0.08 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 7.99% to $110.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ultra Clean Holdings Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.09. It beat the average revenue estimate of $108 million.

Quoting Management: Clarence Granger, Ultra Clean’s Chairman and Chief Executive Officer, stated: “I am pleased that during the quarter we had several noteworthy achievements as we continued to see a recovery in the semiconductor capital equipment industry. Our cash balance was at an all-time high of $71.3 million while we reduced our debt by nearly $2.4 million. Our gross margins improved by nearly a full percentage point quarter over quarter and our inventory levels continued to decline with increased operational focus. We also continued our integration activities with AIT as we focus on the synergies created by combining the two companies.”

Key Stats (on next page)…

Revenue increased 9.6% from $100.46 million in the previous quarter. EPS increased 100% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.12 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.37 to a profit of $0.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)