What happened
Shares of II-VI (COHR 4.57%) rose 14.3% in June 2017, according to data from S&P Global Market Intelligence.
So what
The maker of optoelectronic components, laser systems, and engineered materials introduced a new line of fiber laser combiners on June 6, and ramped up production volumes of a popular laser diode two days later. Both of these announcements are potentially good news for II-VI's laser cutting and welding business. Citing strong demand for high-powered lasers, the company is doubling its production in that category in 2017.
Now what
The product announcements really were good news, but honestly, the share price gains represent more of a return to rationality among investors after its third-quarter earnings report on May 2. Though the company beat analysts' expectations across the board, II-VI saw its share prices tumble 12% lower due to soft fourth-quarter guidance.
Given some time to think it over, investors now appear ready to forgive II-VI for that slightly disappointing short-term guidance and refocus on the company's 19% year-over-year revenue growth and 50% earnings increase. All told, II-VI shares have now gained 89% over the last 52 weeks.