Veeco Instruments Third Quarter Earnings Sneak Peek

Veeco Instruments Inc. (NASDAQ:VECO) will unveil its latest earnings on Monday, October 22, 2012. Veeco Instruments designs and manufactures enabling solutions for customers in the high brightness light emitting diode (HB-LED), solar, data storage, semiconductor, scientific research and industrial markets.

Veeco Instruments Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 25 cents per share, a decline of 81.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 25 cents during the last month. Analysts are projecting profit to rise by 74.3% compared to last year’s $1.24.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 30 cents per share versus a mean estimate of net income of 32 cents per share. In the first quarter, the company beat estimates by 29 cents.

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Wall St. Revenue Expectations: On average, analysts predict $130.4 million in revenue this quarter, a decline of 51.3% from the year-ago quarter. Analysts are forecasting total revenue of $539.2 million for the year, a decline of 44.9% from last year’s revenue of $979.1 million.

A Look Back: In the second quarter, profit fell 38.5% to $11.8 million (30 cents a share) from $19.2 million (45 cents a share) the year earlier, missing analyst expectations. Revenue fell 48.4% to $136.5 million from $264.8 million.

Stock Price Performance: Between September 18, 2012 and October 16, 2012, the stock price dropped $6.29 (-17.3%), from $36.35 to $30.06. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 20.6% (+$6.21) over that span. It saw one of its worst periods between September 18, 2012 and September 26, 2012 when shares fell for seven straight days, dropping 16% (-$5.81) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 3.3% in the third quarter of the last fiscal year, 36.1% in fourth quarter of the last fiscal year and 45.1% in the first quarter and then fell again in the second quarter.

Heading into this earnings announcement, net income has dropped 63.8% on average for the last four quarters.

Analyst Ratings: With seven analysts rating the stock as a buy, three rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.27 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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