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Shares of II-VI (NASDAQ:IIVI) jumped more than 10% early Tuesday after the laser manufacturer announced better-than-expected fiscal second quarter 2015 results.
Why it's happening
While quarterly revenue rose just 3% year over year to $176.8 million, II-VI's focus on improving margins through operational efficiency helped it achieve 50% growth in adjusted net earnings per diluted share to $0.24. Bookings -- or orders they expect to convert to revenue over the next year -- rose 11.2% to $186.8 million. Analysts, on average, were expecting the same revenue to result in earnings of just $0.17 per share.
"Our results in the second quarter reflect our continued success delivering innovative products across our markets," elaborated II-VI CEO Francis Kramer, "in particular to our industrial customers."
For the current quarter, II-VI expects revenue from continuing operations to range from $174 million to $182 million, with earnings per diluted share of $0.18 to $0.24. The mid-point of both ranges sits above analysts' expectations, which call for fiscal third quarter revenue and earnings of $177.3 million and $0.17 per share, respectively. In the end, given II-VI's solid execution and increase in bookings, patient investors appear rightly enthusiastic that their company is finally executing on its turnaround and returning to growth.
Steve Symington has no position in any stocks mentioned. 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.