Ultra Clean Holdings, Inc. (UCTT) Stock | Quarterly Numbers Exceed Expectations


Ultra Clean Holdings (NASDAQ: UCTT)

Ultra Clean Holdings is a California based developer and supplier of critical systems and subsystems for the semiconductor for the semiconductor capital equipment, flat panel, medical, energy and research industries.


Ultra Clean Holdings Earnings and Outlook

Ultra Clean Holdings announced its second quarter results early this morning. The company was pleased to report $0.10 earnings per share for the quarter, exceeding the original analyst prediction of $0.50. UCTT’s quarterly revenue amounted to $117.50 million, which surpassed the consensus amount of $114.28 million. Northland analysts upgraded the UCTT’s shares from a “market perform” rating to an “outperform” rating. We look forward to seeing if they can maintain this new upgraded rating in the third quarter, or if they will fizzle back to their previous rating.    WKRB13.com


Ultra Clean Holdings CEO’s Comments

“Second quarter performance exceeded our expectations and we won important new business with semiconductor customers. We continue to position UCT for future strategic investments that will extend our leadership position by focusing on the expansion of our capabilities for new and existing customers, winning new designs and improving profitability,” said Jim Scholhamer, UCT’s Chief Executive Officer.  Yahoo Finance


Technical Analysis

UCTT gapped up to $6.80 up from yesterday’s close of $5.42 which is a 25% increase based on favorable earnings news and analysts upgrade. Taking a look at the daily chart we can see the stock is right at the June 17 highs of $6.90, let’s see if the stock can break thru and hold that price and use it as a support level. For the next significant price level that could be a resistance, we would have to go back to April 4, where it reached a high of $7.51. The stock does have a wide yearly range as the 52 week high is $10.29 which it reached on August 19, 2014. The stock also has a relatively low float of $25.7 million shares which shows it has the capability to run off the bell and making it a good candidate for the gap and go strategy. I would look for entry above the $6.90 level and try to hold for run up to $7.50.


Company Profile

Ultra Clean Holdings, Inc. designs, develops, prototypes, engineers, manufactures, and tests subsystems tailored to specific steps in the semiconductor manufacturing process and manufacturing processes in other addressed industries primarily in North America, Asia, and Europe. It offers precision robotic systems that are used when accurate controlled motion is required; robotic surgery products; gas delivery systems, which include one or more gas lines consisting of small diameter internally polished stainless steel tubing, filters, mass flow controllers, regulators, pressure transducers and valves, and an integrated electronic and/or pneumatic control system; and various industrial and automation production equipment products. The company also provides chemical mechanical planarization subsystems; chemical delivery modules that deliver gases and reactive chemicals in a liquid or gaseous form from a centralized subsystem to the reaction chamber; top-plate assemblies; and frame assemblies that are support structures fabricated from steel tubing or folded sheet metal. In addition, it offers process modules, which are the subsystems of semiconductor manufacturing tools that process integrated circuits onto wafers; and other high level assemblies. The company primarily serves original equipment manufacturers in the semiconductor capital equipment, consumer, medical, energy, industrial, flat panel, and research industries. Ultra Clean Holding, Inc. was founded in 1991 and is headquartered in Hayward, California. Yahoo Finance