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Veeco shares rise on Cree earnings
Shares of Veeco Instruments Inc., a maker of equipment used in producing light-emitting diodes, climbed 6.8 percent to $37.53 Wednesday after a major LED manufacturer posted earnings that beat consensus estimates.
In a research note, Stifel, Nicolaus & Company analyst Patrick Ho said that the December quarter earnings report of Cree Inc. held “positive implications” for Plainview-based Veeco.
Ho said that “overcapacity” in the LED equipment industry has weighed on Veeco for more than two years.
Though Veeco is not a supplier to Cree, Ho said, Cree’s assertion of an increase in demand for LEDs used in general lighting bodes well for the company.
Federal law aimed a promoting energy efficiency barred U.S. companies from manufacturing or importing all incandescent bulbs as of Jan. 1, encouraging a shift to alternatives like fluorescents and LEDs.
Shares of Cree, whose headquarters is in Durham, N.C., climbed 7.2 percent to close at $67.33.