Ultra Clean Holdings, Inc (NASDAQ:UCTT) Shareholders Get Unexpected News

Ultra Clean Holdings, Inc (NASDAQ:UCTT)

Ultra Clean Holdings, Inc (NASDAQ:UCTT) operates in a very specialized area – it develops, manufactures, and sells testing equipment for the semiconductor industry. It produces robotics, gas delivery systems, and tubing products among others. Shares in the Hayward, CA-based firm ended trading yesterday at $12.58 but gapped up and opened at $14 after their Q4 2016 and full year financials were released.

Ultra Clean Holdings, Inc (NASDAQ:UCTT) reported total revenue for Q4 2016 at $174.5 million, an increase of 19.4% over Q3 2016 and 68.8% from the same period a year ago. Semiconductor revenue increased 20.6% from Q3 2016 and 60.7% from the same period a year ago. Gross margin for Q4 2016 was 17.0% compared with 16.1% for the prior quarter and 12.9% for the same period a year ago. Net income for Q4 was $10.0 million, or $0.30 per share (basic and diluted), compared with net income of $2.6 million, or $0.08 per share (basic and diluted) in the previous quarter, and a net loss of $15.8 million, or $0.49 per share (basic and diluted) for the same period a year ago. Total revenue for fiscal 2016 was $562.8 million, an increase of 20.0% from fiscal 2015. Gross margin for 2016 was 15.4% compared with 15.1% for 2015. Net income for 2016 was $10.1 million, or $0.31 per basic share and $0.30 per diluted share compared with a net loss of $10.7 million, or $0.34 per share (basic and diluted) in 2015. Ultra Clean Holdings, Inc (NASDAQ:UCTT) also gave guidance for 2017 – they expect revenue to be between $190 – $197 million.

UCTT shares opened the day at $14 and closed just a penny higher. UCTT shares reached a high of $14.45 and a low of $13.60 on heavy volumes – over seven times average daily volumes. Company sales have been relatively flat for the past five years. In 2011 Ultra Clean Holdings, Inc (NASDAQ:UCTT) posted a figure of $452.6 million and that figure stood at just $469.1 million in 2015. So today’s revenue figure was a bit of good news. EPS also turned positive after a loss in 2015 that was preceded by four years of EPS profit. Four firms follow UCTT and one assigns UCTT shares a rating of “Strong Buy”, two rate the shares as a Buy”, and one rates the shares as a “Hold”.

 

2/23/2017
Ticker Symbol UCTT
Last Price a/o 4:32 PM EST  $                    14.00
Average Volume                    382,200
Market Cap (mlns)  $                  414.51
Sales (mlns) $491.60
Shares Outstanding (mlns) 32.95
Share Float (mlns) 29.74
Shortable Yes
Optionable Yes
Inside Ownership 1.40%
Short Float 3.05%
Short Interest Ratio 2.37
Quarterly Return 27.59%
YTD Return 29.69%
Year Return 164.84%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23 year Wall St professional with stints in M&A, risk management, and algorithm trading.

 

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