As I mentioned last night, Veeco (VECO) reported earnings about inline, but their guidance was extraordinary and it led to a decent gap up open in the stock this morning, despite being way overextended.  However, it’s giving it all back due to overall market weakness, profit taking and news that Citigroup has removed the stock from its Top Pick Live list.  However, Citi still maintains its Buy rating.  Hat tip to Street Insider for the following analyst comment from Citi:

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“Coming into print, we felt results would make ~$4.00 EPS run rate visible based on 2H shipment run-rates “well north of the mid $2.00’s EPS still contemplated by the Sell side. While things went largely as scripted, CQ2 order commentary was even better than we expected (orders appear likely to rise yet again in June) and stocks like this typically don’t peak until orders peak “especially given what appears to be a very large MOCVD tool requirement (~5000-7500 tools depending on potential tool yield improvement) to service the general lighting opportunity over the next 7-10yrs. That said, the industry now looks set to take ~550 tools just in 2H:10 “a run-rate of ~1100/yr which seems to require ~300-500/yr of general lighting just to be sustained.”