Why Ultra Clean Holdings (UCTT) Hit a One-Year High Today

NEW YORK (TheStreet) -- Ultra Clean Holdings  (UCTT) hit a one-year high of $13.88 as of 1:20 p.m. on Wednesday after the company, which creates subsystems and supplies them to the semiconductor industry, reported fourth-quarter results and issued first-quarter guidance that surpassed expectations.

Ultra Clean reported adjusted earnings per share of 26 cents and revenue of $126.3 million, which beat analysts' expectations of 23 cents per share on revenue of $125.68 million. The company also announced it expects adjusted EPS of 28 cents to 31 cents and revenue of $135 million to $140 million in the first quarter. This beat analysts' expectations of 21 cents per share on revenue of $122.4 million.

In the wake of the results, Stifel Nicolaus raised its target price on Ultra Clean Holdings to $15 from $13 and kept its "buy" rating. The firm expects the company's earnings growth to increase rapidly. Northland Securities also raised its target price to $17 from $9 and kept its "outperform" rating.

Must ReadUltra Clean Achieves ISO 13485:2003 Registration

TheStreet Ratings team rates ULTRA CLEAN HOLDINGS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ULTRA CLEAN HOLDINGS INC (UCTT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."

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