Ultra Clean, Rackspace: After-Hours Trading (Update 1)

Updated from 5:16 p.m. ET to include latest share prices, additional information on Yingli Green Energy and Masco.

NEW YORK ( TheStreet) -- Shares of Ultra Clean Holdings ( UCTT) surged in late trades on Monday after the maker of semiconductor capital equipment topped Wall Street's expectations in its latest quarter and gave a strong outlook.

Hayward, Calif.-based Ultra Clean said it earned $7.8 million, or 34 cents a share, in the three months ended Dec. 31. The latest results included a tax benefit of $6.4 million, or 28 cents a share. Backing out the gain, Ultra Clean would have earned 6 cents a share. Revenue totaled $86.9 million for the quarter, down 17.5% on a sequential basis.

The average estimate of analysts polled by Thomson Reuters was for earnings of 3 cents a share in the December period on revenue of $85.3 million. Analyst estimates typically exclude one-time items. Ultra Clean lifted its fourth-quarter guidance on Jan. 11, forecasting between breakeven results and a profit of 2 cents a share on revenue ranging from $85 million to $86 million.

For the fiscal first quarter ending in March, Ultra Clean sees earnings of 15 to 18 cents a share on revenue of $105 million to $110 million. Wall Street's current consensus view is for a profit of 12 cents a share on revenue of $98.6 million.

"We believe that we are at the bottom of this market decline and expect our operating results to be significantly better in the next quarter," said Clarence Granger, the company's chairman and CEO, in a statement. "I am proud of the success we have had in maintaining a strong balance sheet during this period, as we were able to grow our cash position by $14.1 million for the quarter to an all-time high of $52.0 million."

The stock was last quoted at $9.10, up 17%, on volume of more than 67,000, according to Nasdaq.com. Based on Monday's regular-session close at $7.80, the shares were down more than 40% in the past year, although they've more than doubled since scraping a 52-week low of $3.77 on Oct. 4.

Of the four analysts covering Ultra Clean, three were bullish ahead of the report, rating the shares at either strong buy (2) or buy (1), and the 12-month median price target sits at $8.63. At current levels, the shares trade at a forward price-to-earnings multiple of 12.8X. The company doesn't pay a dividend.

Check out TheStreet's quote page for Ultra Clean Holdings for year-to-date share performance, analyst ratings, earnings estimates and much more.

If you liked this article you might like

Like Your Market With a Little Froth?

Strong Action in Individual Stocks Starts to Feel a Bit Frothy

Good Stocks Are There for the Picking

Those Who Anticipate a Market Disaster Are Paying a Disastrous Price

Rev's Forum: Anticipating Disaster Seems Smart but Carries a Hefty Cost