Yahoo Finance Veeco Instruments Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Veeco Instruments Inc. (NASDAQ:VECO) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$174m, some 2.3% above estimates, and statutory earnings per share (EPS) coming in at US$0.37, 35% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Veeco Instruments
Taking into account the latest results, the most recent consensus for Veeco Instruments from six analysts is for revenues of US$718.5m in 2024. If met, it would imply an okay 4.5% increase on its revenue over the past 12 months. Earnings are expected to improve, with Veeco Instruments forecast to report a statutory profit of US$1.27 per share. Before this earnings report, the analysts had been forecasting revenues of US$716.8m and earnings per share (EPS) of US$1.27 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$40.86, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Veeco Instruments analyst has a price target of US$44.00 per share, while the most pessimistic values it at US$35.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Veeco Instruments' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. Factoring in the forecast slowdown in growth, it seems obvious that Veeco Instruments is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Veeco Instruments analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Veeco Instruments that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
