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