Ultra Clean Holdings, Inc. (NASDAQ:UCTT) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Ultra Clean Holdings, Inc. (NASDAQ:UCTT) released its quarterly result to the market. The early response was not positive, with shares down 3.9% to US$23.59 in the past week. The results don't look great, especially considering that statutory losses grew 2,287% toUS$3.58 per share. Revenues of US$519m did beat expectations by 3.6%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the four analysts covering Ultra Clean Holdings, is for revenues of US$2.05b in 2025. This implies a perceptible 4.2% reduction in Ultra Clean Holdings' revenue over the past 12 months. Losses are forecast to balloon 23% to US$4.14 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.02b and losses of US$0.42 per share in 2025. So it's pretty clear the analysts have mixed opinions on Ultra Clean Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

Check out our latest analysis for Ultra Clean Holdings

The consensus price target held steady at US$31.25, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ultra Clean Holdings at US$35.00 per share, while the most bearish prices it at US$30.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.2% by the end of 2025. This indicates a significant reduction from annual growth of 6.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ultra Clean Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Ultra Clean Holdings. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$31.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ultra Clean Holdings going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Ultra Clean Holdings you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.