Veeco stock touches 52-week low at $25.68 amid market shifts

Published 20/11/2024, 16:18
Veeco stock touches 52-week low at $25.68 amid market shifts
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In a challenging market environment, Veeco Instruments Inc. (NASDAQ:VECO) stock has recorded a new 52-week low, dipping to $25.68. The company, known for its semiconductor and scientific research equipment, has faced headwinds over the past year, reflected in a 1-year change showing a decline of 9.91%. Investors are closely monitoring Veeco's performance as it navigates through the industry's dynamic landscape, with the recent price level marking a significant point of interest in its market trajectory.

In other recent news, Veeco Instruments reported robust Q3 2024 results, with revenues hitting $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. Veeco anticipates steady growth in the semiconductor sector, despite some market challenges. Q4 2024 revenue is projected to be between $165 million and $185 million, with a 10% growth projection for the semiconductor sector for the full year. The company has narrowed its 2024 revenue guidance to $700 million to $720 million and anticipates diluted non-GAAP EPS between $1.68 and $1.78.

Needham, a financial services firm, recently adjusted its price target for Veeco Instruments to $35 from $39, while maintaining a Buy rating. The adjustment followed Veeco's cautious outlook for its 2025 prospects, particularly regarding its operations in China and the Data Storage sector. Needham now forecasts a 6% revenue decline for Veeco Instruments in 2025, reflecting these updated projections and the anticipation that the market has already factored in the potential weaknesses for 2025. Despite the lowered price target, Needham continues to recommend Veeco Instruments as a Buy, suggesting confidence in the company's long-term value.

InvestingPro Insights

Veeco Instruments Inc. (VECO) has recently hit a new 52-week low, and InvestingPro data provides additional context to this development. The company's market capitalization stands at $1.46 billion, with a P/E ratio of 18.25, indicating that investors are still willing to pay a premium for the company's earnings despite recent challenges.

InvestingPro Tips suggest that while the stock has taken a significant hit over the last six months, with a price total return of -36.05%, there are some positive indicators. For instance, Veeco's net income is expected to grow this year, and analysts predict the company will remain profitable. This aligns with the article's focus on investor interest in Veeco's performance amid industry challenges.

Moreover, the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial stability as it navigates the current market environment. These factors may be crucial for Veeco's resilience in the face of the headwinds mentioned in the article.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Veeco Instruments, providing a deeper understanding of the company's financial health and market position.

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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