) to hold from buy.
Analyst Greg Wagenhoffer says Q2 results should be in-line with his $116 million revenue estimate, and also in line with both his and the Street's $0.41 EPS estimate due to a strong backlog. Wagenhoffer adds, however, that times are tough. Given the continued fall-off in the optical telecom market and in semiconductor capital spending, as well as significant overcapacity in both sectors, he sees a poor outlook for continued new orders.
Wagenhoffer expects order shortfalls mainly in optical telecom; he notes Veeco preannounced Q2 orders of $80M-$90 million vs. its prior guidance of $100 million to $110 million. He cut the $1.80 2001 EPS estimate to $1.30, and cut the $2.35 2002 EPS estimate to $1.50.
He also set a new $40 target, at 27 times the 2002 EPS.