Shares of engineered material and opto-electronic component provider II-VI (NASDAQ:IIVI) jumped on Tuesday following the company's fiscal second-quarter report. II-VI beat analyst estimates on all fronts, achieving record bookings, revenue, and backlog. At 10:45 a.m. EST, the stock was up about 10%.
II-VI reported second-quarter revenue of $231.8 million, up 21% year over year and $6 million higher than the average analyst estimate. Bookings rose 32% year over year to $274.3 million, driven by growth in all of II-VI's segments. Photonics was the standout performer, with bookings growing 39.6% year over year to $136.1 million. Laser solutions and performance products grew bookings by 28% and 21.5%, respectively.
Non-GAAP EPS came in at $0.49, up from $0.30 in the prior-year period and $0.23 better than analysts were expecting. Operating income in the photonics segment more than doubled, helping to drive II-VI's adjusted operating margin up 4.5 percentage points year over year to 15.8%.
II-VI CEO Vincent D. Mattera Jr. expects the company's solid results to continue:
Our second fiscal quarter results reflect our strategy and the results of our efforts to address the growing market opportunities we are seeing, including those in the communications markets. Company margin expansion is being driven by volume and manufacturing efficiencies. With a book to bill ratio of 1.18, we anticipate the momentum we are currently experiencing to continue through the second half of fiscal year 2017.
II-VI expects to produce third-quarter revenue in the range of $234 million to $244 million, and non-GAAP EPS between $0.31 and $0.36. The negative impact of the acceleration of the company's investment in its new technology platform will be roughly $0.11 per share. During the second quarter, investments in the platform reduced operating income by $9.6 million.
Shares of II-VI carved out a new 52-week high on a strong second quarter. The company expects its momentum to continue into the second half of its fiscal year, and investors will be looking for continued revenue and earnings growth.