Shares of II-VI Inc. (NASDAQ:IIVI) rose on Tuesday following the engineered material and opto-electronic component supplier's fiscal fourth-quarter earnings report. II-VI produced double-digit revenue growth, beat analyst estimates on all fronts, and provided first-quarter guidance that was ahead of expectations. The stock was up about 11.3% at 11 a.m. EDT.
II-VI reported fourth-quarter revenue of $321.1 million, up 17.3% year over year and about $19.9 million above the average analyst estimate. Laser solutions revenue grew 21.3% to $115.1 million; photonics revenue grew 12.2% to $126.5 million; and performance products revenue grew 20.3% to $79.5 million.
Sales to the industrial market jumped 19% compared to the prior-year period, while military sales grew 15% and communications sales rose 6%. Sales into the automotive, consumer, and semiconductor capital equipment markets more than doubled, accounting for half of the company's growth in fiscal 2018.
Non-GAAP earnings per share came in at $0.52, up from $0.48 in the prior-year period and $0.08 better than analysts were expecting.
For the first quarter of fiscal 2019, II-VI expects to produce revenue between $305 million and $315 million, and non-GAAP EPS between $0.54 and $0.60. Analysts were expecting revenue guidance of $305.3 million.
The quarter's sound results came despite investments in new markets that will take time to pay off. "Our strategic investments in technology and manufacturing scale, including those aimed at keeping our product portfolio differentiated, continued during the early adoption phase of several new emerging markets," said II-VI CEO Vincent Mattera.