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II-VI Misses Where it Counts

By Seth Jayson - Updated Apr 7, 2017 at 12:13PM

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Just the facts, Fool.

II-VI (Nasdaq: IIVI) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q1), II-VI beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
II-VI reported revenue of $132.3 million. The five analysts polled by S&P Capital IQ hoped for revenue of $130.0 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $138.4 million.

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

EPS details
EPS came in at $0.21. The four earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS of $0.20 for Q1 were 31% lower than the prior-year quarter's $0.29 per share.

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

Margin details
For the quarter, gross margin was 36.9%, 290 basis points worse than the prior-year quarter. Operating margin was 12.5%, 410 basis points worse than the prior-year quarter. Net margin was 9.6%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $135.0 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $562.1 million. The average EPS estimate is $1.09.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,289 members out of 1,311 rating the stock outperform, and 22 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 403 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 $20.28.

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Stocks Mentioned

II-VI Incorporated Stock Quote
II-VI Incorporated
IIVI
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