Continue Reading Below
Shares of Ultra Clean Holdings (NASDAQ: UCTT), a supplier of systems and subsystems to the semiconductor equipment industry, jumped on Thursday after the company reported its fourth-quarter results. Ultra Clean beat analyst estimates for both revenue and earnings, sending the stock up 12% by 11:30 a.m. EST.
Ultra Clean reported fourth-quarter revenue of $174.5 million, up 68.8% year over year and about $1.5 million higher than the average analyst estimate. Semiconductor revenue rose 60.7% year over year, while revenue derived from outside the U.S. jumped 126.2%.
Image source: Ultra Clean Holdings.
Non-GAAP EPS came in at $0.36, up from a loss of $0.01 during the prior-year period and $0.09 better than analysts were expecting. Gross margin increased more than 4 percentage points year over year to 17%, driving earnings higher.
Ultra Clean expects to produce between $190 million and $197 million of revenue during the first quarter of 2017, along with non-GAAP EPS between $0.40 and 0.45. The company produced revenue of just $112 million during the first quarter of 2016.
Ultra Clean President and CEO Jim Scholhamer said the company was on track to meet its long-term targets:
With a solid close to 2016 and guidance calling for continued growth, investors had plenty of reasons to push up the stock on Thursday.
10 stocks we like better than Ultra Clean HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Ultra Clean Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017