Ultra Clean (NASDAQ:UCTT – Get Free Report) issued its earnings results on Tuesday. The semiconductor company reported $1.15 EPS for the quarter, beating the consensus estimate of $0.94 by $0.21, FiscalAI reports. The firm had revenue of $759.00 million during the quarter, compared to analyst estimates of $727.55 million. Ultra Clean’s quarterly revenue was up 48.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.28 earnings per share.
Here are the key takeaways from Ultra Clean’s conference call:
- Record Q3 performance exceeded the high end of guidance, with revenue of $759 million, up 48.8% year over year, while gross margin rose to 17.3%, operating margin to 9.0%, and EPS to $1.15.
- Management raised its view for 2027 wafer-fabric-equipment spending to above $200 billion and said customer discussions indicate 2028 demand is becoming more visible, supported by AI, leading-edge logic, DRAM/HBM, and advanced packaging investment.
- UCT is expanding ahead of demand, including additional clean-room and weldment capacity, increased vertical integration, and approximately $80 million–$100 million of incremental investment through 2027–2028; the company expects about $4 billion of capacity in Q1 and sees a path beyond $5 billion.
- The company secured eight new NPI program wins across etch, deposition, lithography, and metrology, which management believes can support future share gains and higher-margin, engineered content as customers transition to new nodes.
- Rapid demand growth is straining the supply chain, particularly mass flow controllers, with constraints potentially lasting another quarter or two. Operating cash flow was negative $42.3 million as inventory increased by $93.4 million, and the company issued additional shares through its ATM program, creating shareholder dilution.
Ultra Clean Stock Up 10.2%
Ultra Clean stock opened at $51.48 on Wednesday. The stock’s 50 day moving average is $68.00 and its 200 day moving average is $73.94. Ultra Clean has a one year low of $21.49 and a one year high of $144.22.
Analyst Ratings Changes
UCTT has been the topic of a number of recent analyst reports. Oppenheimer lifted their price objective on shares of Ultra Clean from $115.00 to $150.00 and gave the company an “outperform” rating in a research note on Tuesday, August 4th. UBS Group set a $127.00 target price on Ultra Clean in a research note on Thursday, October 8th. Zacks Research downgraded Ultra Clean from a “strong-buy” rating to a “hold” rating in a report on Friday, October 2nd. Freedom Broker assumed coverage on Ultra Clean in a research note on Friday, October 9th. They issued a “buy” rating and a $127.00 price target on the stock. Finally, TD Cowen lifted their price target on Ultra Clean from $130.00 to $140.00 and gave the company a “buy” rating in a research note on Tuesday, August 4th. Six investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Ultra Clean has an average rating of “Moderate Buy” and a consensus target price of $128.17.
View Our Latest Report on UCTT
Ultra Clean Company Profile
Ultra Clean Holdings, Inc (NASDAQ: UCTT) provides critical subsystems, components and services used in the production of semiconductor and other high-technology products. The company designs and manufactures gas delivery systems, fluid delivery systems, precision-machined components, process modules and other equipment used by semiconductor capital-equipment manufacturers.
Ultra Clean also provides contract manufacturing, analytical laboratory, equipment installation, repair, refurbishment and tool-maintenance services.
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