Veeco Instruments (VECO) saw its stock price plummet 12.19% in after-hours trading on Wednesday, following the release of its first-quarter 2025 earnings report and second-quarter guidance. Despite beating analysts' expectations for Q1, the company's weak outlook for Q2 appears to have spooked investors.

For the first quarter, Veeco reported revenue of $167.3 million, slightly above the IBES estimate of $166.2 million. The company's adjusted net income came in at $22.2 million, surpassing the IBES estimate of $19.2 million. Earnings per share (EPS) for the quarter stood at $0.20 on a GAAP basis, while adjusted EPS reached $0.37.

However, the positive Q1 results were overshadowed by Veeco's disappointing outlook for the second quarter. The company anticipates Q2 revenue to range between $135 million and $165 million, with non-GAAP diluted earnings per share expected to be between $0.12 and $0.32. This guidance suggests a potential significant drop in both revenue and earnings compared to Q1, which likely triggered the sharp sell-off in after-hours trading. Investors appear to be concerned about the company's near-term growth prospects and potential challenges in the semiconductor industry.