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 outlook. The significant drop reflects investors' disappointment with the company's financial performance and future guidance.

For the first quarter of 2025, Veeco reported revenue of $167.3 million, slightly above the IBES estimate of $166.2 million but down from $174.5 million in the same period last year. The company's GAAP net income fell to $11.9 million, with earnings per share (EPS) dropping to $0.20, compared to $0.37 in Q1 2024. On a non-GAAP basis, net income was $22.2 million, or $0.37 per diluted share, down from $26.4 million or $0.45 per share in the previous year.

While Veeco highlighted growth in its Semiconductor business, particularly in Advanced Packaging, and notable achievements such as receiving Intel's 2025 EPIC supplier award, investors seemed more concerned with the company's outlook. Veeco's guidance for the second quarter of 2025 projects revenue between $135 million and $165 million, with non-GAAP diluted earnings per share expected to be between $0.12 and $0.32. This outlook suggests a potential significant sequential decline in both revenue and earnings, likely contributing to the sharp after-hours stock price decline.