The 10-second takeaway
For the quarter ended March 31 (Q3), II-VI missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
II-VI reported revenue of $132.6 million. The four analysts polled by S&P Capital IQ predicted a top line of $134.7 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $130.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The three earnings estimates compiled by S&P Capital IQ forecast $0.25 per share on the same basis. GAAP EPS of $0.22 for Q3 were 39% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 600 basis points worse than the prior-year quarter. Operating margin was 12.8%, 690 basis points worse than the prior-year quarter. Net margin was 10.6%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $152.0 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $552.2 million. The average EPS estimate is $1.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,302 members out of 1,324 rating the stock outperform, and 22 members rating it underperform. Among 458 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 453 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 $25.18.
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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.