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Will These Numbers from II-VI Be Good Enough for You?

By Seth Jayson - Updated Apr 7, 2017 at 12:20PM

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Checking expectations

II-VI (Nasdaq: IIVI) is expected to report Q1 earnings on Oct. 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict II-VI's revenues will wane -6.0% and EPS will compress -24.1%.

The average estimate for revenue is $130.0 million. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, II-VI reported revenue of $136.9 million. GAAP reported sales were 3.9% higher than the prior-year quarter's $131.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.26. GAAP EPS of $0.23 for Q4 were 34% lower than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.1%, 450 basis points worse than the prior-year quarter. Operating margin was 14.7%, 480 basis points worse than the prior-year quarter. Net margin was 10.6%, 610 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $564.1 million. The average EPS estimate is $1.10.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,294 members out of 1,316 rating the stock outperform, and 22 members rating it underperform. Among 398 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 393 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 $21.22.

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Stocks Mentioned

II-VI Incorporated Stock Quote
II-VI Incorporated
IIVI
$58.67 (-7.72%) $-4.91

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