VACNY - The Market Shrugs Off Disappointing Orders From VAT Group
- VAT Group saw third quarter revenue near the high end of management's expectations, but orders were 14% weaker than expected and the book-to-bill came in below 1x.
- Front-loading of orders is a plausible explanation given customers' need to secure essential components during the pandemic, but management's prior omission of this detail isn't a good look.
- Despite healthy underlying trends in the semiconductor space, demand commentary on 2021 from equipment suppliers has been more mixed, and memory demand is still a big unknown.
- VAT Group isn't cheap enough to be a compelling idea today, but it's a name to watch for the eventual pullback in equipment names.
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The Market Shrugs Off Disappointing Orders From VAT Group