II-VI Beats Expectations but Takes a Step Back Anyway
II-VI (NAS: IIVI) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), II-VI missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
II-VI reported revenue of $132.6 million. The four analysts polled by S&P Capital IQ predicted a top line of $134.7 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $130.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The three earnings estimates compiled by S&P Capital IQ forecast $0.25 per share on the same basis. GAAP EPS of $0.22 for Q3 were 39% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 600 basis points worse than the prior-year quarter. Operating margin was 12.8%, 690 basis points worse than the prior-year quarter. Net margin was 10.6%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $152.0 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $552.2 million. The average EPS estimate is $1.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,302 members out of 1,324 rating the stock outperform, and 22 members rating it underperform. Among 458 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 453 give II-VI a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on II-VI is outperform, with an average price target of $25.18.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.