Why Shares of II-VI Inc. Soared Today

Image source: II-VI Inc.

What happened

Shares of engineered material and opto-electronic component provider II-VI (NASDAQ: IIVI) jumped on Tuesday following the company's fiscal second-quarter report. II-VI beat analyst estimates on all fronts, achieving record bookings, revenue, and backlog. At 10:45 a.m. EST, the stock was up about 10%.

So what

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II-VI reported second-quarter revenue of $231.8 million, up 21% year over year and $6 million higher than the average analyst estimate. Bookings rose 32% year over year to $274.3 million, driven by growth in all of II-VI's segments. Photonics was the standout performer, with bookings growing 39.6% year over year to $136.1 million. Laser solutions and performance products grew bookings by 28% and 21.5%, respectively.

Non-GAAP EPS came in at $0.49, up from $0.30 in the prior-year period and $0.23 better than analysts were expecting. Operating income in the photonics segment more than doubled, helping to drive II-VI's adjusted operating margin up 4.5 percentage points year over year to 15.8%.

II-VI CEO Vincent D. Mattera Jr. expects the company's solid results to continue:

Now what

II-VI expects to produce third-quarter revenue in the range of $234 million to $244 million, and non-GAAP EPS between $0.31 and $0.36. The negative impact of the acceleration of the company's investment in its new technology platform will be roughly $0.11 per share. During the second quarter, investments in the platform reduced operating income by $9.6 million.

Shares of II-VI carved out a new 52-week high on a strong second quarter. The company expects its momentum to continue into the second half of its fiscal year, and investors will be looking for continued revenue and earnings growth.

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Timothy Green has no position in any stocks mentioned. The Motley Fool recommends II-VI. The Motley Fool has a disclosure policy.