Veeco Instruments (VECO) reported record level revenues and released bullish guidance, sending earnings estimates higher.
Company Description
Veeco makes instruments for manufactures of solar, data storage, semiconductors, HB_LED, scientific research and industrial products. Factories are located across the U.S. it has offices domestically, as well as in Europe and Asia.
Record-Setting Revenues
On Feb 8 Veeco reported quarterly results that showed record revenues of $146 million, up from $110 million. Net income also jumped, to $18.7 million, up from a $74 million loss.
Earnings per share came in at 37 cents, beating the Zacks Consensus by a dime, for back-to-back surprises.
Great Outlook
John Peeler, CEO, said “With record backlog of $402 million at the end of December, Veeco begins 2010 with unprecedented momentum.” He also continued to highlight efforts to increase capacity.
Veeco projects EPS for next quarter to be between 41 and 50 cents, above the current consensus of 40 cents.
Estimates Spike
Following the earnings release the Zacks Consensus Estimate jumped 60 cents to $1.99, compared to a 28 cent loss last year. The average forecast for next year rose almost a dollar to $2.67, which is a 34% growth rate.
The Chart
Despite the jump in share price, VECO is trading with nice valuations. The P/E is about 13.5 time next year’s estimates and a PEG of 1.0.
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