Ultra Clean (UCTT) to Report Q3 Earnings: What's in Store?

Ultra Clean Holdings UCTT is slated to report third-quarter 2022 results on Oct 26.

For the third quarter, Ultra Clean projects revenues in the $585 million to $645 million range. Earnings are estimated between 94 cents and $1.18 per share.

The Zacks Consensus Estimate for quarterly revenues stands at $615 million, indicating growth of 11.08% from the year-ago quarter.

The consensus mark for third-quarter earnings remained unchanged over the past 30 days at $1.06 per share. The figure indicates a year-over-year decline of 0.93%.

Ultra Clean’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missing once, the average surprise being 1.14%.

Ultra Clean Holdings, Inc. Price and EPS Surprise

Ultra Clean Holdings, Inc. Price and EPS Surprise

Ultra Clean Holdings, Inc. price-eps-surprise | Ultra Clean Holdings, Inc. Quote

Factors to Note

Ultra Clean’s third-quarter performance is likely to have benefited from strong demand for semiconductor products and services, led by the acceleration of digital transformation that has increased the consumption of semiconductor content.

The company might have gained from its ramped-up capital spending plans to develop its robust portfolio and diverse offerings that address megatrends such as 5G, AI, electric vehicles and high-performance computing.

Ultra Clean is expected to have benefited from its strategic capacity expansion, which helps address the supply chain bottleneck globally. With the markets re-opening in Shanghai, China, and the recent expansion of facilities to Malaysia, the United States, Europe and Israel, production has ramped up and is expected to have aided the top line.

However, the company is expecting slowing demand for PCs, low-end smartphones and some consumer electronics due to rising inflation. However, even with capacity expansion, global supply chain constraints are still persistent and are expected to have impacted the top-line growth of Ultra Clean negatively in the to-be-reported quarter.

What Our Model Indicates

The Zacks model does not conclusively predict an earnings beat for the company this time. This is because it does not have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to increase the odds of an earnings beat. But that’s not the case here.

Even though Ultra Clean has a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three companies worth considering, as our model shows that it has the right combination of elements to beat on earnings in their upcoming release:

The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

TTD’s shares have lost 37.8% in the year-to-date period compared with the Zacks Computer and Technology sector’s decline of 33.5%.

Tencent Music Entertainment Group TME has an Earnings ESP of +4.76% and a Zacks Rank #2.

TME shares have lost 44.1% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.8%.

Upstart UPST has an Earnings ESP of +114.71% and a Zacks Rank #2.

UPST shares have lost 85.5% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 36.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Ultra Clean Holdings, Inc. (UCTT) : Free Stock Analysis Report
 
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Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report
 
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