The 10-second takeaway
For the quarter ended Dec. 31 (Q2), II-VI met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and earnings per share contracted significantly.
Margins dropped across the board.
II-VI reported revenue of $127 million. The four analysts polled by S&P Capital IQ expected a top line of $128 million. Sales were 4.9% higher than the prior-year quarter's $121 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.25. The four earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS of $0.21 for Q2 were 31% lower than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.3%, 710 basis points worse than the prior-year quarter. Operating margin was 11.2%, 920 basis points worse than the prior-year quarter. Net margin was 10.5%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $137 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $553 million. The average EPS estimate is $1.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,310 members out of 1,333 rating the stock outperform, and 23 members rating it underperform. Among 459 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 454 give II-VI a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on II-VI is outperform, with an average price target of $21.30.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of II-VI. Motley Fool newsletter services have recommended buying shares of II-VI. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.