Dougherty & Co Cuts Price Target on Ultra Clean (UCTT), Strong Quarter Followed by Poor Guidance
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Price: $84.93 -8.59%
Rating Summary:
9 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is reaffirming its Buy rating on shares of Ultra Clean (NASDAQ: UCTT), but is lowering its price target by $3 to $11.50.
The company reported record results for Q2 with EPS of $0.30 and $133.7 million in revenue. LED sales in the quarter totaled $14.6 million, ahead of the firms estimate and company's previous guidance. UCTT then released its Q3 guidance which only calls for ESP of $0.14 to $0.18.
The firm believes that stocks will react poorly to the weak Q3 guidance. An analyst at Dougherty & Co comments, "On its Q1 call, management signaled early on that they were starting to see some weakness in its semi-related business for Q2. This has continued and with the midpoint of its Q3 guidance, management is looking for a pullback of some 28% in semirelated sales. LED business should see an increase of 16.5% to $17K, with other non-semi-related business staying steady."
Dougherty & Co is cutting it 2011 estimates for Q3 sales to $108 million with EPS of $0.16 from $125 million and EPS of $0.24, for Q4 to $117.3 million and $0.22 from $140.1 million and $0.34, and for FY11 to $485.8 million and $0.93 from $520.0 million and $1.11. For 2012, the firm lowered its sales and EPS estimates to $522.5 million and $1.15 from $584 million and $1.44.
For more ratings news on Ultra Clean click here and for the rating history of Ultra Clean click here.
Shares of Ultra Clean closed at $7.11 yesterday.
The company reported record results for Q2 with EPS of $0.30 and $133.7 million in revenue. LED sales in the quarter totaled $14.6 million, ahead of the firms estimate and company's previous guidance. UCTT then released its Q3 guidance which only calls for ESP of $0.14 to $0.18.
The firm believes that stocks will react poorly to the weak Q3 guidance. An analyst at Dougherty & Co comments, "On its Q1 call, management signaled early on that they were starting to see some weakness in its semi-related business for Q2. This has continued and with the midpoint of its Q3 guidance, management is looking for a pullback of some 28% in semirelated sales. LED business should see an increase of 16.5% to $17K, with other non-semi-related business staying steady."
Dougherty & Co is cutting it 2011 estimates for Q3 sales to $108 million with EPS of $0.16 from $125 million and EPS of $0.24, for Q4 to $117.3 million and $0.22 from $140.1 million and $0.34, and for FY11 to $485.8 million and $0.93 from $520.0 million and $1.11. For 2012, the firm lowered its sales and EPS estimates to $522.5 million and $1.15 from $584 million and $1.44.
For more ratings news on Ultra Clean click here and for the rating history of Ultra Clean click here.
Shares of Ultra Clean closed at $7.11 yesterday.
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