Veeco revises Q4 and full-year 2024 guidance

Published 14/01/2025, 11:06 pm
VECO
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PLAINVIEW, N.Y. – Veeco Instruments Inc. (NASDAQ: NASDAQ:VECO), a manufacturer of semiconductor process equipment with a market capitalization of $1.48 billion, has updated its financial guidance for the fourth quarter and full year of 2024. The company now anticipates fourth-quarter revenue to be in the range of $175 to $185 million, a slight increase from the lower end of the prior guidance of $165 to $185 million. For the full year, revenue is expected to be between $710 to $720 million, building on its impressive 9.7% revenue growth over the last twelve months. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with strong financial health indicators including a healthy current ratio of 3.54.

The updated guidance includes a change in expected GAAP diluted earnings per share for the fourth quarter, now ranging from $0.09 to $0.28, which is a broader range than the previous forecast of $0.18 to $0.27. Non-GAAP diluted earnings per share for the same period is estimated to be between $0.36 to $0.44, compared to the prior guidance of $0.35 to $0.45. The full-year 2024 GAAP diluted earnings per share are projected to be in the range of $1.07 to $1.26, while the Non-GAAP diluted earnings per share is anticipated to be between $1.69 to $1.76. InvestingPro data reveals that 7 analysts have recently revised their earnings expectations downward, though the company maintains a solid gross profit margin of 43.5%.

The adjusted figures reflect a net impact on Q4 2024 GAAP Net Income ranging from a $9 million expense to a $4 million benefit. This is attributed to the company's Silicon Carbide Epitaxy technology, acquired in 2023, not meeting market penetration expectations. This net impact includes non-cash impairments related to acquired intangible assets, offset by a gain from a reduction in the contingent consideration related to the acquisition and estimated tax benefits.

Veeco's management is scheduled to discuss these financial updates and present at the 27th Annual Needham Growth Conference later today. The presentation will be broadcast live at 1:30 PM ET and can be accessed on the investor relations section of Veeco's website.

The provided financial data is preliminary, unaudited, and was prepared based on internal reporting for the year ended December 31, 2024. The company notes that, apart from the aforementioned items, no unusual events or trends were identified that might materially affect the estimates. However, it is mentioned that actual results may vary from the provided guidance.

This announcement is based on a press release statement from Veeco Instruments Inc.

In other recent news, Veeco Instruments has seen a series of developments, including analyst upgrades, a new partnership, and revised revenue estimates. Analysts at Citi have upgraded Veeco Instruments, citing an expectation of a cyclical trough and potential rebound in the company's fundamentals. Veeco Instruments has also secured a partnership with PlayNitride, a pioneer in MicroLED technology, further expanding its operations in the semiconductor sector.

Despite a challenging environment, Veeco Instruments remains resilient, with the company expecting minimal impact from new U.S. export regulations on its business in China. Needham, a financial services firm, has adjusted its price target for Veeco Instruments to $35, maintaining a Buy rating. This adjustment reflects the firm's revised revenue estimates for Veeco in 2025, forecasting a 6% revenue decline, mainly due to anticipated downturns in the Data Storage sector.

Veeco Instruments has also reported robust financial performance for the third quarter of 2024, with revenues reaching $185 million and non-GAAP earnings per share (EPS) of $0.46. The company's semiconductor segment saw a significant year-over-year increase, largely due to substantial orders from a leading foundry. These are recent developments, highlighting the company's ongoing activities in the semiconductor sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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