The 10-second takeaway
For the quarter ended March 31 (Q3), II-VI met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share expanded.
Gross margins dropped, operating margins shrank, net margins increased.
II-VI logged revenue of $145.2 million. The five analysts polled by S&P Capital IQ foresaw revenue of $146.8 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $132.6 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 $0.25. The four earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.25 for Q3 were 14% higher than the prior-year quarter's $0.22 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 35.1%, 250 basis points worse than the prior-year quarter. Operating margin was 12.4%, 330 basis points worse than the prior-year quarter. Net margin was 10.9%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $158.7 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $563.7 million. The average EPS estimate is $0.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,282 members out of 1,304 rating the stock outperform, and 22 members rating it underperform. Among 352 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 346 give II-VI a green thumbs-up, and six 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 $19.40.
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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 recommends 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.