Ultra Clean Holdings 2025 Q1 Earnings Misses Expectations as Net Loss Narrows 65.3%

Ultra Clean Holdings (UCTT) reported its fiscal 2025 Q1 earnings on April 29, 2025. The company posted a total revenue of $518.60 million, reflecting an 8.6% increase compared to the previous year's first quarter. Despite improved revenues, Ultra Clean Holdings missed expectations, with a net loss narrowing by 65.3% to $-2.50 million. The company's guidance for the second quarter suggests revenue between $475 million to $525 million, with GAAP diluted net loss per share anticipated between $(0.06) and $(0.26), and non-GAAP diluted net income per share expected between $0.17 and $0.37.

Revenue

Ultra Clean Holdings reported a total revenue of $518.60 million for the first quarter of 2025, representing an 8.6% increase from the previous year's first quarter. The Products segment contributed $457 million, while the Services segment added $61.60 million. The overall revenue growth indicates steady performance across both segments.

Earnings/Net Income

The company reduced its net loss to $-2.50 million in Q1 2025 from $-7.20 million in Q1 2024, marking a 65.3% improvement. Earnings per share improved to a loss of $0.11 from a loss of $0.21 per share, indicating better financial management but still falling short of turning a profit.

Price Action

Post-Earnings Price Action Review

Following the earnings report, Ultra Clean Holdings' stock price exhibited mixed reactions over different time frames. Despite the revenue growth, the stock's 3-Day win rate for revenue was 51.36%, while the 10-Day win rate increased slightly to 51.91%, and the 30-Day win rate stood at 50.80%. Net income reports showed a similar pattern, with a 3-Day win rate of 51.91%, a 10-Day win rate of 51.80%, and a 30-Day win rate of 50.49%. The EPS report reflected a 3-Day win rate of 50.80%, but improved to 51.91% over ten days, before settling back to 50.80% over 30 days. These figures suggest a stronger potential for short-term gains, but diminishing impact over the longer term, highlighting the need for caution in relying solely on earnings reports for long-term investment decisions.

CEO Commentary

"UCT's first quarter results were impacted by softening demand late in the quarter as customers reassessed their spending in reaction to an increasingly uncertain and volatile business environment," said Clarence Granger, Interim CEO of UCT. He emphasized the company's focus on executing for customers while controlling costs and maximizing business efficiency amid reduced industry visibility and a dynamic geopolitical landscape.

Guidance

The Company expects revenue in the range of $475 million to $525 million for the second quarter of 2025. GAAP diluted net loss per share is anticipated to be between $(0.06) and $(0.26), while non-GAAP diluted net income per share is projected to be between $0.17 and $0.37.

Additional News

In recent developments for Ultra Clean Holdings, the company has faced legal scrutiny as multiple law firms, including The Gross Law Firm and Pomerantz LLP, have filed class action lawsuits against Ultra Clean Holdings. The lawsuits allege that the company made materially false and/or misleading statements during the class period from May 6, 2024, to February 24, 2025. These legal actions are centered around claims of securities fraud or other unlawful business practices, primarily relating to Ultra Clean’s reports on demand from the Chinese market. Investors who purchased shares during this period are encouraged to participate in the lawsuits, with a lead plaintiff deadline set for May 23, 2025.