II-VI Earnings: Here’s Why the Stock is Falling Now

II-VI Inc. (NASDAQ:IIVI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11%.

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II-VI Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.64% to $0.25 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 9.51% to $145.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: II-VI Inc. reported adjusted EPS income of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0.31. It missed the average revenue estimate of $146.76 million.

Quoting Management: Francis J. Kramer, president and chief executive officer said, “We are reporting third quarter fiscal 2013 results in line with the guidance we issued on January 22, 2013. The results reflect operational improvements in several of our businesses, including Marlow Industries in our Advanced Product Group segment, as they begin to capitalize on new market opportunities. In addition, we also received full-quarter contributions from the three recent acquisitions we completed during the quarter ended December 31, 2012. We have experienced some cyclical softening in the optical communication market addressed primarily by our Near-Infrared Optics segment.”

Key Stats (on next page)…

Revenue increased 15.34% from $125.89 million in the previous quarter. EPS increased 31.58% from $0.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.31 to a profit $0.30. For the current year, the average estimate has moved down from a profit of $1.00 to a profit of $0.96 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)