Image source: II-VI Inc.
Continue Reading Below
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%.
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:
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.
10 stocks we like better than II-VI When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and II-VI wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 4, 2017