Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why II-VI Shares Plunged

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 optics technologist II-VI (NASDAQ: IIVI  ) sank 12% today after its full-year guidance missed Wall Street expectations.

So what: II-VI's third-quarter results -- EPS of $0.25 on revenue of $145.2 million -- were just slightly below estimates, but downbeat guidance for the rest of the year reinforces concerns over slowing growth going forward. In fact, management blamed the weak outlook on softening demand across several of its business segments, giving investors little hope for a near-term turnaround. 

Now what: Management now sees full-year EPS of $0.84-0.89 on revenue of $550 million-$555 million, well below the consensus of $0.93 and $563.7 million. "We have experienced some cyclical softening in the optical communication market addressed primarily by our Near-Infrared Optics segment," CEO Francis Kramer cautioned. "In the Military and Materials segment, PRM continues to be affected by the start-up of its new rare earth product line. ... Demand for selenium and tellurium products continues to be low and, therefore, the pricing environment is a challenge." Of course, with the stock hitting a new 52-week low today and trading at a forward P/E of about 12, much of those headwinds might already be baked into the price.

Interested in more info on II-VI? Add it to your watchlist.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2380171, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:29:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
IIVI $23.44 Down -0.27 -1.14%
II-VI CAPS Rating: *****