Veeco Instruments Beats Estimates but Has a Big Earnings Drop
Veeco Instruments (NAS: VECO) reported earnings on Feb. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Veeco Instruments met expectations 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 shrank across the board.
Veeco Instruments logged revenue of $191.7 million. The 22 analysts polled by S&P Capital IQ expected to see net sales of $193.0 million. Sales were 36% lower than the prior-year quarter's $300.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.72. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share on the same basis. GAAP EPS of $0.52 for Q4 were 89% lower than the prior-year quarter's $4.69 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 43.3%, 760 basis points worse than the prior-year quarter. Operating margin was 17.8%, 1,570 basis points worse than the prior-year quarter. Net margin was 10.6%, 5,510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $151.7 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $613.1 million. The average EPS estimate is $1.74.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 426 members out of 457 rating the stock outperform, and 31 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give Veeco Instruments a green thumbs-up, and seven 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 $29.45.
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At the time this article was published 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 ofMotley 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.
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