II-VI Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Investors never know what to expect for II-VI (NAS: IIVI) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Tuesday, April 24. II-VI develops, manufactures and markets products for a diversified customer base including industrial manufacturing, military and aerospace, electronics and telecommunications, and thermo-electronics applications.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back II-VI as a buy. But with 60% of analysts rating it a buy, II-VI is still below the mean analyst rating of its nearest 10 competitors, which average 69% buys. Analysts don't like II-VI as much as competitor Newport overall. Six out of seven analysts rate Newport a buy compared to three of five for II-VI. Analysts' rating of II-VI has stayed constant from three months prior.
  • Revenue Forecasts: On average, analysts predict $134.3 million in revenue this quarter. That would represent a rise of 3.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.25 per share. Estimates range from $0.24 to $0.27.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 98.9% assigning it an "outperform" rating. Most of the community backs the All-Stars, with 98.3% granting it a rating of "outperform." II-VI has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.


Management:
II-VI's profit has risen year-over-year by an average of 33.2% over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 7.1 percentage points in the last quarter. Revenue rose 4.9% while cost of sales rose 17.6% to $83.3 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. II-VI's gross margins have decreased year-over-year for the last three quarters. Gross margins reflect the total sales revenue retained after costs. See how II-VI has been doing for the last four quarters:

Quarter

Q2

Q1

Q4

Q3

Gross Margin

34.3%

39.8%

41.6%

40.7%

Operating Margin

12.4%

17.8%

19.5%

19.7%

Net Margin

10.5%

13.4%

16.7%

17.8%

For all our II-VI-specific analysis, including earnings and beyond, add II-VI to My Watchlist.

At the time this article was published The Motley Fool owns shares of II-VI. Motley Fool newsletter services have recommended buying shares of 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners