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.
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 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.
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.
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.
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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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 has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.