Veeco Instruments Second Quarter Earnings Sneak Peek

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Veeco Instruments Inc. (NASDAQ:VECO) will unveil its latest earnings on Thursday, July 26, 2012. 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.

Veeco Instruments Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 32 cents per share, a decline of 76.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 19 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 32 cents during the last month. Analysts are projecting profit to rise by 69.9% versus last year to $1.45.

Past Earnings Performance: Last quarter, the company beat estimates by 29 cents, coming in at net income of 45 cents a share versus the estimate of profit of 16 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit fell 68.8% to $16.4 million (42 cents a share) from $52.6 million ($1.24 a share) the year earlier, but exceeded analyst expectations. Revenue fell 45.1% to $139.9 million from $254.7 million.

Wall St. Revenue Expectations: Analysts predict a decline of 49.3% in revenue from the year-earlier quarter to $134.3 million.

Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price rose $5.79 (21.6%), from $26.83 to $32.62. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 20.6% (+$6.21) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 6.5% (-$2.35) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 3.3% in the third quarter of the last fiscal year and 36.1% in fourth quarter of the last fiscal year before falling again in the first quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 70.1% over the past four quarters.

Analyst Ratings: With eight analysts rating the stock as a buy, three rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.84 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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