Ultra Clean Holdings, Inc. (UCTT) Wednesday said it expects fourth-quarter results to come in ahead of its expectations. The outlook is indicated to beat Street view. Shares of the Hayward, California-headquartered maker of critical subsystems for the semiconductor industry increased over 17 percent on the news.
Ultra Clean expects earnings for the fourth quarter to exceed the high end of its prior guidance of between $0.00 and $0.02 per share. On average, 3 analysts polled by Thomson Reuters expect earnings of $0.01 per share for the fourth quarter.
The company now expects fourth-quarter revenue of about $85 million to $86 million, higher than the prior guidance of $75 million to $80 million, which was issued nearly a month into the quarter. The Street currently expect revenues of $78.9 million.
In the year-ago quarter, the company earned $3.9 million or $0.17 per share. Revenue for the fourth quarter of 2010 was $120.3 million.
Among others in the industry, integrated contract manufacturing provider Benchmark Electronics, Inc. (BHE) also has forecast fourth-quarter revenues and earnings above its earlier guidance.
Ultra Clean is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. Its customers are primarily original equipment manufacturers.
Ultra Clean's revenues for the first quarter grew 28.7 percent from the prior-year period to $126.7 million. Second-quarter revenues grew 26.3 percent to $133.7 million. However, in the third quarter, there was a slump of 11.1 percent in revenues to $105.3 million.
Gross margin for the third quarter was the lowest for the year-to-date at 12.2 percent, down from 14.2 percent for the second quarter, and 13.9 percent for the first quarter.
The company expects to release its fourth quarter and full year's operating results for 2011 and its revenue and earnings per share estimates for its first quarter of 2012 on February 13.
UCTT is currently trading at $7.05, up $0.99 or 16.45%, on the Nasdaq. Over the past year, the stock traded in a range of $3.77 - $13.62.
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