Veeco Instruments Earnings: Weak Revenue Leads to This Selling
Veeco Instruments Inc. (NASDAQ:VECO) posted a decrease in profit as revenue declined. Veeco Instruments designs and manufactures enabling solutions for customers in the high brightness light emitting diode (HB-LED), solar, data storage, semiconductor, scientific research and industrial markets.
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Veeco Instruments Earnings Cheat Sheet for the Third Quarter
Results: Net income for Veeco Instruments Inc. fell to $13.5 million (34 cents per share) vs. $35.9 million (90 cents per share) a year earlier. This is a decline of 62.5% from the year-earlier quarter.
Revenue: Fell 52.6% to $126.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Veeco Instruments Inc. beat the mean analyst estimate of 32 cents per share. It fell short of the average revenue estimate of $134.3 million.
Quoting Management: John R. Peeler, Veeco’s Chairman and Chief Executive Officer, commented, “Veeco’s third quarter revenue was $127 million, and adjusted EBITA and non-GAAP earnings per share were $17 million and $0.34, in line with our guidance. Veeco generated $46 million in cash flow from operations, ending the quarter with $574 million in cash and short term investments.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 29 cents in the second quarter, by 7 cents in the first quarter, and by 19 cents in the fourth quarter of the last fiscal year.
For four consecutive quarters, revenue has fallen. Revenue declined 48.4% to $136.5 million in the second quarter. The figure fell 45.1% in the first quarter from the year earlier and dropped 36.1% in the fourth quarter of the last fiscal year from the year-ago quarter.
After expanding the quarter before, margins contracted in the second quarter. Gross margin dropped to 42.3%, a 4.3 percentage points decline from the year-earlier quarter. In the first quarter, the figure rose 7.1 percentage points from a year ago to 44.9%.
Net income has dropped 63.6% year-over-year on average across the last five quarters. Performance was hurt by an 89.7% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 26 cents a share to 33 cents over the last ninety days. For the fiscal year, the average estimate has moved up from 98 cents a share to $1.45 over the last ninety days.
Competitors to Watch: Applied Materials, Inc., Aixtron AG, CVD Equipment Corporation, Cree, Inc., Intevac, Inc., Amtech Systems, Inc., Zygo Corporation, Canon Inc., MEMC Electronic Materials, Inc., and Novellus Systems, Inc.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)