The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Veeco Instruments missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Veeco Instruments reported revenue of $126.9 million. The 19 analysts polled by S&P Capital IQ foresaw a top line of $130.5 million on the same basis. GAAP reported sales were 53% lower than the prior-year quarter's $268.0 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 $0.34. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. GAAP EPS of $0.34 for Q3 were 62% lower than the prior-year quarter's $0.89 per share. (The prior-year quarter included -$0.42 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.3%, 430 basis points worse than the prior-year quarter. Operating margin was 9.4%, 1,820 basis points worse than the prior-year quarter. Net margin was 10.6%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $132.6 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $539.9 million. The average EPS estimate is $1.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 399 members out of 430 rating the stock outperform, and 31 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 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 $35.80.
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