The 10-second takeaway
For the quarter ended March 31 (Q1), Veeco Instruments beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Veeco Instruments logged revenue of $139.9 million. The 19 analysts polled by S&P Capital IQ predicted revenue of $126.1 million on the same basis. GAAP reported sales were 45% lower than the prior-year quarter's $254.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.42 for Q1 were 66% lower than the prior-year quarter's $1.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.7%, 410 basis points worse than the prior-year quarter. Operating margin was 15.0%, 1,640 basis points worse than the prior-year quarter. Net margin was 11.7%, 900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $128.1 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $541.4 million. The average EPS estimate is $1.31.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 418 members out of 450 rating the stock outperform, and 32 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Veeco Instruments a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Veeco Instruments is hold, with an average price target of $29.68.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.