Yesterday, in "II-VI, Hike!," we gave you the pregame view of Motley Fool Hidden Gems pick II-VI's
II-VI shares posted a 7-percentage-point gain yesterday in the immediate aftermath of earnings. Today, the company's running up the score by another 13%, all in response to quarterly news that was nothing short of fabulous:
- Sales jumped 31%, outpacing their year-long run of 24% growth.
- Profits kept pace, hitting $0.49 per diluted share in the fiscal fourth quarter, and $2.11 for the year.
- And while those last two numbers may suggest slowing profits in the final quarter of the year, remember -- II-VI enjoyed an "after-tax gain on sale of equity investment of $0.52 per share" earlier in the year. Net that out, and profit growth accelerated as well, at 27% for the year.
Now, you might expect barn-burning growth like this to be short-lived. You'd be wrong. According to II-VI, not only was sales growth strong last year, but it also looks similarly strong for the year to come. Bookings of new orders grew 30% over the course of this fiscal year, and 31% in Q4 alone -- ahead of sales and on track with sales growth, respectively. Thus, we're looking at a pretty robust pipeline of new business in the new fiscal year.
Much of the growth showed up on the defense-contracting side of II-VI's business. As CEO Francis Kramer confirmed, II-VI's new Pacific Rare Specialty Metals & Chemicals acquisition helped to "more than double bookings and segment earnings" in the Military and Materials segment. (Sounds like customers Raytheon
Last but not least
The final bit of good news from II-VI, I'm afraid I can only guess at: Free cash flow. Judging from accounts receivable's 24% year-over-year rise, and the merely 20% increase in inventory (equal to and below full-year revenue growth, respectively), I can make an educated guess that free cash flowed freely at II-VI. However, management has not yet filed its 10-K with the SEC, and it appears that the company did not include a cash flow statement with its earnings release. I guess it would be nice if II-VI could provide a cash flow with its press release, to make it easier for investors to get the whole story.
Well, whaddya know? I guess there is still one thing II-VI can still improve on!
IV more on II-VI, read: