Veeco Instruments (VECO) - Zacks #1 Rank Top Performers

Shares of Veeco Instruments Inc. (VECO) only climbed 2.85% during Wednesday's session, but that was enough to make it one of the top-performing Zacks #1 Rank companies.

A few days before Christmas, volume was lighter than usual at 2.25 million shares, compared to the daily average of around 2.73 million.

Late October saw VECO report third-quarter results that included another positive EPS surprise, and year-over-year gains in EPS and revenue. However, shares moved lower in response to the report on news that some revenue originally intended for the fourth quarter may not be realized until the first quarter.

But that hasn't changed this company's lofty Zacks Rank, as earnings estimates remain well above levels from 2 months ago with no erosion in the past 30 days. Furthermore, VECO continues to enjoy a longer-term "Outperform" recommendation.

Veeco Instruments makes equipment to develop and manufacture LEDs, solar panels, hard disk drives and other devices. VECO is 1 of 3 companies from the electronic-manufacturing machinery industry on today's Zacks #1 Rank. The other 2 companies are GT Solar International, Inc. (SOLR) and MKS Instruments, Inc. (MKSI).

Earnings Estimates for Veeco Instruments

There are 5 estimates for this year and next year each, but there has been no movement in the past 30 days. Nevertheless, despite concerns about revenue, it's apparent that these analysts liked the quarter's results overall as expectations remain well above levels from 60 days ago.

The Zacks Consensus Estimate for this year is currently $4.39 per share, which is up 8.1% from 2 months ago. Meanwhile, the Zacks Consensus Estimate of $5.04 per share for next year has advanced nearly 10% in that time.

Therefore, analysts are currently expecting profit growth of practically 15% for 2011 over 2010.

Veeco Instruments also offered a guidance for the current (or fourth) quarter between $1.46 and $1.74 per share. The Zacks Consensus Estimate was at $1.43 at the time but is now at $1.58, marking a gain of 10.5% in 2 months.

By the way, VECO also forecasted revenue between $285 million and $320 million for the quarter.

Third-Quarter Report

As the chart above shows, the third quarter marked the fifth straight period with a positive surprise for VECO. Earnings per share reached $1.39, which bettered the Zacks Consensus Estimate by 15%. Averaging the last 4 quarters together, the company has surprised to the upside by 21.2%.

Revenue soared to $277.1 million from $74.7 million a year ago.

Looking forward, VECO believes it is well positioned for an "excellent revenue performance in the first half of 2011".

 
MKS INSTRUMENTS (MKSI): Free Stock Analysis Report
 
GT SOLAR INTL (SOLR): Free Stock Analysis Report
 
VEECO INSTRS-DE (VECO): Free Stock Analysis Report
 
Zacks Investment Research