II-VI Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of II-VI (NAS: IIVI) fell 12% today after the company announced earnings that missed expectations.

So what: Revenue rose 16% in the fourth quarter to $131.8 million but fell short of the $134.5 million analyst had expected. Diluted earnings per share were $0.34, falling two cents short of estimates.

Now what: Not only was the fourth quarter worse than expected, but first quarter guidance was also lower than analysts were looking for. II-VI is still expecting growth but not nearly as much as investors had hoped for in the near term. On the bright side, II-VI has $149 million in cash on hand versus just $18.7 million in long-term debt, and only a 17.2 P/E ratio after today's drop, which leaves some value for investors.

Interested in more info on II-VI? Add it to your watchlist.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs 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.