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HAYWARD, Calif. - Ultra Clean Holdings, Inc. (NASDAQ:UCTT), a developer and supplier of critical subsystems for the semiconductor industry with a market capitalization of $1.1 billion, announced the immediate resignation of CEO Jim Scholhamer due to personal health concerns. The news comes as the stock trades near its 52-week low, having declined about 34% year-to-date. Clarence Granger, Chairman of the Board and former CEO, will step in as interim CEO while the company seeks a permanent replacement.
Granger, who has been with UCT since 1996, brings a wealth of experience to the role, having previously served as COO, Executive Vice President of Operations, and CEO for 12 years. His deep understanding of UCT’s operations, competition, and financial position is expected to provide continuity and leadership during this transition. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.89, suggesting robust financial health despite recent market challenges.
During Scholhamer’s tenure, UCT saw growth through semiconductor cycles and navigated the challenges of a global pandemic, achieving annual revenue of $2.1 billion. Granger acknowledged Scholhamer’s contributions, noting the company’s significant expansion and the strong team in place to continue its growth strategy. InvestingPro analysis indicates the company remains undervalued, with analysts setting price targets significantly above current levels. For detailed valuation metrics and 15+ additional ProTips, subscribers can access the comprehensive Pro Research Report.
UCT has diversified its portfolio in recent years, supporting various stages of industry growth, from fab construction to equipment buildout and servicing. With a P/E ratio of 46x and net income expected to grow this year, the company is positioned to meet increasing demand with its operational capacity and high-quality products and services.
A conference call and webcast will be hosted by Ultra Clean today at 1:30 p.m. PT to discuss the leadership change, accessible without a passcode. A replay will also be available with the confirmation code 43194#.
This leadership transition is based on a press release statement from Ultra Clean Holdings, Inc., and the company has not provided any further details on Scholhamer’s health or the timeline for appointing a new CEO.
In other recent news, Ultra Clean Holdings Inc. reported its Q4 2024 earnings, surpassing analyst expectations with an EPS of $0.51 and revenue of $563.3 million, both exceeding forecasts. Despite this, the company anticipates flat revenue growth for the first half of 2025, with projected Q1 revenue between $500 million and $555 million. TD Cowen analysts have adjusted their outlook, reducing Ultra Clean’s price target to $48 while maintaining a Buy rating, citing challenges in China and potential impacts on Intel’s business. Similarly, Needham analysts lowered their price target for Ultra Clean to $40, also retaining a Buy recommendation, following earnings that fell short due to reduced business in China. Ultra Clean’s management forecasts a 5% growth in wafer fabrication equipment for the year, despite anticipating a 70% year-over-year decline in China. The company continues to operate from its Shanghai facility, navigating export restrictions by localizing manufacturing and shipments within China. Despite market uncertainties, analysts from both TD Cowen and Needham express confidence in Ultra Clean’s potential for growth, supported by AI-driven demand and anticipated recovery in the wafer fabrication equipment sector.
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