Oct. 30, 2014, 5:48 PM
Oct. 29, 2014, 4:16 PM
Oct. 22, 2014, 2:50 PM
- Canaccord and D.A. Davidson have downgraded Cree (CREE -16.7%) to neutral ratings after the company offered a weaker-than-expected FQ2 outlook and reported a 580 bps Q/Q gross margin drop.
- Canaccord's Jonathan Dorsheimer, who wasn't quite enthusiastic about reiterating a Buy following Cree's Oct. 2 FQ1 warning: "In spite of the fact that we may be...marking the bottom for CREE shares, we simply fail to see a potentially positive catalyst ... Our thesis was based around the transition from captive to merchant sales in Cree’s components [business], which at best has been pushed by 6-9 months now."
- He adds Canaccord's research confirms Cree has lost LED component share to Philips' Lumileds unit, and that a shift towards mid-power LED sales in China is also taking a toll.
- Cowen's Jeffrey Osborne (Market Perform) thinks margins will stabilize as Cree cuts factory output, continues seeing healthy lighting and power/RF growth, and gets a lighting margin boost from a mix shift to non-bulb lighting products. He's still cautious on account of Cree's near-term LED component challenges, but expects the company's technology strengths will help its cause long-term.
- Fellow LED industry names Rubicon (RBCN -2.3%), Veeco (VECO -3.7%), and Aixtron (AIXG -2.5%) are also lower.
Sep. 25, 2014, 10:19 AM
- Chinese LED chip manufacturer San'an Optoelectronics has ordered 50 of Aixtron's (NASDAQ:AIXG) next-gen Showerhead MOCVD systems. Aixtron calls the order "one of the largest" it has ever received.
- Though LED sales to end-users have been steadily growing, LED equipment sales have remained weak thanks to industry overcapacity. Craig-Hallum views Aixtron's order as a sign the industry is now expanding, and recommends buying Aixtron rival Veeco (VECO -0.6%).
Jul. 30, 2014, 5:28 PM
- Though Veeco (NASDAQ:VECO) beat Q2 estimates, it's guiding for Q3 revenue of $92M-$100M and EPS of -$0.07 to -$0.15, below a consensus of $104.9M and -$0.04 (history repeating).
- Orders rose 1% Q/Q in Q2 to $104M, and were above revenue of $95.1M. MOCVD orders (LED-driven) totaled $75M, data storage $25M, and MBE $6M.
- Veeco say it's still seeing "positive trends in the LED market, including strong LED chip demand, very high LED fab utilization rates and solid customer quoting activity." LED equipment demand has been depressed for some time, in spite of strong end-user consumption.
- Gross margin fell to 32.3% from 35.6% a year ago. GAAP opex +13% to $46.6M.
- Q2 results, PR
Jul. 30, 2014, 4:18 PM
Jun. 17, 2014, 12:55 PM
- SolarCity has announced plans to build a 1GW+ module plant in NY, and to follow it up with one or more much larger facilities. Notably, the company declares (in spite of a current capacity glut) it needs to build the plants to meet long-term solar demand.
- Yingli missed Q1 estimates, but reported a healthy gross margin (thanks in part to strong Japanese sales) and reiterated full-year guidance.
- Also: Goldman is out with a bullish note, predicting rooftop solar installations will post a 40% CAGR through 2016.
- Gainers: FSLR +2.8%. SPWR +4.2%. SUNE +4.4%. JASO +8.2%. SOL +7.5%. JKS +6.5%. CSIQ +7.4%. DQ +4.2%. ASTI +3.9%. HSOL +6.9%. TSL +5.6%. ENPH +3.5%. CSUN +3.7%. RGSE +11.3% (announced a new Hawaiian deal).
- SolarCity's plans are a positive for equipment vendors GT Advanced (GTAT +1.5%) and Veeco (VECO +1.6%), each of which has seen its solar orders plummet thanks to the capacity glut.
- Solar ETFs: KWT, TAN
- Yesterday: Solar stocks rally; Deutsche upbeat on YieldCo potential
May 5, 2014, 4:24 PM
- Though it beat Q1 estimates, Veeco (VECO) expects Q2 revenue of $87M-$97M and EPS of -$0.23 to -$0.14, largely below a consensus of $96.8M and -$0.11.
- Q1 orders totaled $103M, up 21% Q/Q and 47% Y/Y, and above revenue of $90.8M. MOCVD equipment orders rose 59% Q/Q to $83M thanks to rising demand from LED manufacturers in Asia and elsewhere. Data Storage orders fell to $15 from $22M in Q4, and MBE orders fell to $5M from $11M.
- Veeco asserts LED fab utilization rates "have improved to high levels at most key accounts and LED adoption is happening faster than many had expected." But it also cautions MOCVD orders could be "lumpy and unpredictable on a quarterly basis," and that the company lacks 2H visibility. Q2 orders are expected to be at or above Q1 levels.
- Rival Aixtron (AIXG), which moved higher last week following its Q1 report, might follow Veeco lower.
- Q1 results, PR
May 5, 2014, 4:07 PM
May 4, 2014, 5:35 PM
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Apr. 29, 2014, 2:43 PM
- Though Aixtron (AIXG +2.3%) missed Q1 estimates, it reiterated guidance for 2014 revenue to be flat Y/Y. Earnings are expected to improve from 2013 levels, but an EBIT loss is still forecast.
- In addition, the LED equipment maker's orders 2% Q/Q and 26% Y/Y in Q1 to €37.7M. Quarter-ending backlog was €64.2M, -18% Y/Y but +8% Q/Q.
- Gross margin was 25% - down from seasonally strong Q4's 34%, but much better than the year-ago period's -119% (no typo).
- The company notes capacity utilization among LED customers "remains at relatively high levels" amid growing demand, and thinks "sentiment among customers is improving as the growth in the LED market drives the customers' profitability." At the same time, it observes "there was still no noticeable increase in investments in LED manufacturing capacity expansions" in Q1.
- Rival Veeco (VECO +2.5%) and LED wafer vendor Rubicon (RBCN +1.2%) are higher on a good day for tech. Rubicon reports on Thursday, and Veeco on May 5.
- Q1 results, PR
Apr. 15, 2014, 9:42 AM
- Pandora (P +2.7%) has been upgraded to Buy by Maxim ahead of its April 24 Q1 report.
- Veeco (VECO +2.9%) has been upgraded to Buy by Berenberg. Q1 results arrive on May 5.
- Qlik (QLIK +1.9%) has been upgraded to Buy by Mizuho ahead of its April 24 Q1 report.
- Equinix (EQIX +1.3%) and Catamaran (CTRX +0.9%) have been upgraded to Outperform by Oppenheimer. Equinix reports on April 30.
- Ingram Micro (IM +2.8%) has been upgraded to Buy by Citi.
- IPO underwriters have given Amber Road (AMBR +2.2%) four bullish ratings, and Borderfree (BRDR -0.6%) five bullish ratings to go with a neutral one.
Mar. 28, 2014, 2:40 PM
- Checks suggest Rubicon's (RBCN +2.3%) Chinese sales are up 30% in Q1, writes UBS' Stephen Chin, while upping his PT to $12 from $9.50.
- Chin also estimates Rubicon's ASP for 2" sapphire wafers is up 9% Q/Q, and says UBS' China LED tracker "continues to show that fab utilization rates in China are tracking in low 90s and Chinese LED fabs are likely placing rush MOCVD equipment orders."
- At the same time, he cautions sapphire "is still in 10-15% oversupply," and estimates Rubicon's Malaysian sapphire wafer-polishing factory has a 10%-20% utilization rate due to weak demand for larger wafers. Chin, who maintains a Neutral, thinks Rubicon won't reach operating breakeven until 2015.
- Chin's remarks about MOCVD equipment orders bode well for Veeco (VECO +5.9%) and Aixtron (AIXG +2.7%). The former was upgraded by CLSA this morning, and by UBS 18 days ago.
- Also: AppleInsider is reporting Apple and GT Advanced are looking to expand their new Arizona sapphire production facility. Rubicon shares jumped after Apple's deal with GT was announced last fall, as investors bet the deal would lead to a more favorable sapphire supply/demand balance.
Mar. 28, 2014, 9:50 AM
- InvenSense (INVN +3%) has been upgraded to Buy by Roth.
- Ciena (CIEN -1.4%) and JDS Uniphase (JDSU -0.4%) have been cut to Sector Perform by RBC. MKM upgraded JDS a week ago.
- Veeco (VECO +4.6%) has been upgraded to Buy by CLSA. UBS upgraded shares earlier in March.
- Avago (AVGO +1.9%) has been started at Outperform by Pac Crest.
- Telecom Italia (TI +2.2%) has been upgraded to Buy by Berenberg.
- Integrated Silicon (ISSI +3.4%) has been started at Buy by B. Riley.
Mar. 10, 2014, 9:48 AM
- Alcatel-Lucent (ALU +0.8%) has been upgraded to Outperform by BMO.
- InterActiveCorp (IACI +1.2%) has been upgraded to Outperform by Cowen.
- DuPont Fabros (DFT -2.3%) has been cut to Hold by Jefferies following its Yahoo disclosure.
- Veeco (VECO +8.2%) has been upgraded to Buy by UBS.
- Evolving Systems (EVOL +3.1%) has been upgraded to Buy by B. Riley.
Feb. 19, 2014, 6:13 PM
- AVG expects 2014 revenue of $365M-$405M and EPS of $1.80-$2.10, in-line with a consensus of $394.3M and $1.92. Shares +7.8% AH. (Q4 results, PR)
- Equinix (EQIX) expects Q1 revenue of $572M-$576M and 2014 revenue of more than $2.38B. Those figures are unfavorable to consensus estimates of $578.5M and $2.41B. Full-year adjusted EBITDA is expected to be above $1.1B, up from 2013's $1B. The 2014 capex budget is set at $550M-$600M. Shares +2.3% AH. (Q4 results, PR)
- Veeco (VECO) expects Q1 revenue of $85M-$95M, above an $80.8M consensus. Q4 bookings totaled $85M, -7% Q/Q but above revenue of $73.2M. Shares +3.5% AH. (Q4 results, PR)
- Arris (ARRS) expects Q1 revenue of $1.17B-$1.21B and EPS of $0.42-$0.47 vs. a consensus of $1.15B and $0.46. Q4 book-to-bill was 1.01, and order backlog stood at $538.6M at quarter's end. Shares +2.4% AH. (Q4 results, PR)
VECO vs. ETF Alternatives
Veeco Instruments Inc design, manufacture, and market thin film equipment. The Company's equipment are sold to make electronic devices including LED, power electronics, wireless devises, hard disk drives and semiconductors.
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