Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of LED production equipment specialist Veeco Instruments
So what: Veeco shares have been crushed over the past year on slumping orders, but a wide first-quarter beat -- adjusted EPS of $0.49 versus the consensus of just $0.19 -- is reigniting hopes of a turnaround. While revenue fell to $139.9 million, it also easily topped estimates, suggesting that the stock had far too much pessimism baked into it.
Now what: For the second quarter, management now sees adjusted EPS of $0.29-$0.48 on revenue of $120 million-$145 million, versus Wall Street's view of $0.23 and $128 million. "Veeco is focused on keeping our infrastructure lean and discretionary costs low, while at the same time developing next-generation technology solutions to drive future growth," said CEO John Peeler. And with the stock still down about 40% from its 52-week high, there might even be time to buy into that bullishness.
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