Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Shares of II-VI Skyrocketed 24% Today

By Chris Neiger – May 12, 2020 at 3:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were thrilled with the company's massive fiscal third-quarter earnings beat.

What happened

Shares of II-VI (IIVI -1.75%), an industrial laser company, were surging on Tuesday after the company released its fiscal third-quarter 2020 results after the bell Monday.

As of 3:04 p.m. EDT, II-VI's share price was up 24.1%. 

Green and blue line charts on a dark background.

Image source: Getty Images.

So what 

In the quarter, which ended March 31, II-VI's revenue increased by 83% to $627 million. Those sales were much higher than the $575.7 million Wall Street was expecting from the company. But as strong as revenue was in the quarter, investors even were more impressed with II-VI's huge earnings beat. The company's non-GAAP earnings per share of $0.47 far surpassed analysts' consensus estimate of $0.14.

"Despite significant operating challenges, the extraordinary commitment of our employees allowed us to address the steep ramps requested by our customers, and to exceed the high end of our revenue and EPS guidance with record bookings at 22% above our forecast," CEO Vincent D. Mattera said in the company's earnings press release.

II-VI's bookings hit a record of $840 million in the quarter, and its GAAP operating income reached $69 million, more than doubling year over year.

Now what 

II-VI's management said that it expects revenue in its fiscal fourth quarter to be in the range of $650 million to $700 million. Additionally, the company forecast non-GAAP earnings in the range of $0.50 to $0.70. 

Even with all of the market uncertainty surrounding COVID-19, II-VI clearly delivered an excellent quarter -- and investors are applauding it.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends II-VI. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

II-VI Incorporated Stock Quote
II-VI Incorporated
$34.85 (-1.75%) $0.62

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.