Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of laser and optics manufacturer II-VI (NASDAQ: IIVI ) dipped as much as 10% after reporting second-quarter results that widely missed Wall Street's expectations.
So what: For the quarter, II-VI reported a 1% decline in revenue to $125.9 million, as domestic revenue gains of 3% were offset by international slowness, which caused a 3% decline in revenue. Net income for the quarter fell 8% to $0.19. Wall Street had been expecting II-VI to report a profit of $0.21 on revenue of $138.1 million. Furthermore, II-VI's third-quarter forecast, while perfectly within analysts' EPS range, fell short of the expected revenue forecast by $6 million to $11 million.
Now what: The key point here is that II-VI gets about 60% of its sales overseas, and the market for optical products overseas appears worse than within the United States. What small gains will be netted domestically from a boost in telecom spending will be more than cancelled out by weakness overseas. This marks the fourth straight quarter that II-VI has fallen short of estimates and is more than enough reason to avoid the company for the time being.
Craving more input? Start by adding II-VI to your free and personalized Watchlist so you can keep up on the latest news with the company.
The one tech stock you can trust
The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the name of this company transforming the IT industry, click here -- it's free.