Shares of II-VI (COHR 14.02%) are skyrocketing today, up by 17.5% as of 2:34 p.m. EST, after the company reported fiscal first-quarter earnings. The results crushed profit expectations and guidance came in better than expected as well.
Revenue in the fiscal first quarter came in at $728.1 million, which was basically in line with the consensus estimate of $728.9 million. That resulted in adjusted earnings per share of $0.84. Wall Street was only looking for $0.55 per share in adjusted profits. The optoelectronic technology company continues to integrate its acquisition of Finisar, which has helped II-VI expand its presence in 3D sensing after closing a little over a year ago.
"I am pleased that we have achieved increased revenues, delivered synergies ahead of schedule, increased gross margins 330 basis points, and reengaged a number of customers that were on the sidelines before the [Finisar] transaction was approved," CEO Chuck Mattera said in a statement. "Given the demand we are seeing for our datacom and telecom products, this timely acquisition was and continues to be consistent with our strategy to count on some of the world's greatest mega trends such as 5G and Cloud Computing to deliver a sustainable growth."
Mattera added that II-VI's 3D sensing revenue tripled during the quarter, likely driven in part by Apple's new iPhone 12 lineup, which incorporates II-VI sensors for Face ID.
Outlook for the fiscal second quarter calls for revenue of $750 million to $780 million, easily topping the consensus estimate of $741.3 million. II-VI is forecasting adjusted earnings per share of $0.86 to $0.95, compared to the $0.63 per share in adjusted profits that analysts are looking for.