Veeco Instruments Inc. (NASDAQ: VECO) is a company proving that the great promise of the LED market is just not as great of a segment like so many investors were hoping. The fourth quarter earnings are bad, but the guidance is going very much the wrong way. Shares are getting shelled in the initial reaction.
Earnings came in at $0.61 EPS for the fourth quarter versus the $0.67 estimate from Thomson Reuters. There is actually an adjusted earnings per share figure offered of $0.72 EPS, so at least on an adjusted basis the report may be ok looking backwards. Revenues were $191.7 million versus the $193.39 million expected. First quarter guidance is just awful: $0.13 to $0.34 EPS on $115 to $140 million in sales. The Thomson Reuters consensus data is down at $0.41 EPS and $153.9 million in sales.
A sequential drop is not always favorable even if expected. Unfortunately, the estimates for 2012 are already lower ahead as well. The LED market stocks are not going to be too happy on Tuesday morning by the sound of this report.
Shares of Veeco closed down $0.03 today at $27.14 but the stock is down almost 7% at $25.25 after the close and the 52-week trading range is $20.35 to $57.67.
JON C. OGG
Contact [email protected] for any questions or corrections.
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