What happened Shares of small electronic materials and parts company Veeco Instruments (NASDAQ: VECO) were hit hard on Thursday. As of 12:44 p.m. EDT, the stock was down 15.1%. The stock's decline follows Veeco's third-quarter earnings release. Bearishness toward the stock following the report is likely due to the company's worse-than-expected revenue for the period, as well as management's softer-than-anticipated outlook for fourth-quarter revenue. Image source: Getty Images. So what Veeco reported non-GAAP earnings per share of $0.11 on revenue of $126.8 million. This compares to non-GAAP EPS and revenue of $0.05 and $129.3 million in the year-ago quarter, respectively. Veeco's non-GAAP EPS came in above a consensus analyst estimate for $0.08. But revenue was below an average forecast for $135.5 million. Veeco CEO William Miller admitted in the company's third-quarter earnings release that the results were mixed, noting that revenue was below its guided range for the period "due to broader market softness in China across all of our businesses, as well as a US foundry putting its 7nm FinFET program on hold." But Miller pointed to a better-than-expected non-GAAP gross margin, which "led to non-GAAP operating income, net income and EPS all coming in at the high end of our guided ranges." Now what Veeco's guidance for fourth-quarter revenue between $85 to $105 million is significantly lower than the current consensus forecast for fourth-quarter revenue of $135 million. Even so, Miller said Veeco remains "encouraged by our growth prospects in compound semiconductor, advanced packaging and front-end semiconductor." 10 stocks we like better than Veeco InstrumentsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Veeco Instruments wasn't one of them! That's right -- they think these 10 stocks are even better buys. Click here to learn about these picks! *Stock Advisor returns as of August 6, 2018Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.