II-VI (IIVI) Bullish View Reiterated at Needham & Company Amid 'Strong' Q4

Needham & Company analyst James Ricchiuti reiterated a Buy rating and $26 price target on II-VI, Inc. (NASDAQ: IIVI) following strong Q4 upside with healthy bookings.

Ricchiuti commented, "IIVI delivered upside FQ4 results driven by continued robust demand in optical communications, with industrial and military also providing solid growth. Revs were 7% above the high end of guidance. Non-GAAP EPS were stronger than expected. Bookings rose 24% y/o/y, paced by a 36% increase in orders in Photonics and 19% bookings increase in Laser Solutions. The B-T-B was 1.01. Rev guidance for FQ1 was in-line, while GAAP EPS at the upper end of the range met consensus. However, a significant step-up in R&D expense in F17, mostly associated with its emerging VCSEL business and development of 3D sensing applications for the consumer market is likely to result in downward revision to higher-end Street estimates. We believe these investments could result in new growth catalysts for IIVI over time. We reaffirm our Buy rating."

For F17 they are now estimate EPS at $1.05 vs. prior $1.06, on revenues of $907M, compared with prior 860.6M estimate. They are also introducing a F18 EPS estimate of $1.30 on revenues of $968M.

For an analyst ratings summary and ratings history on II-VI, Inc. click here. For more ratings news on II-VI, Inc. click here.

Shares of II-VI, Inc. closed at $20.37 yesterday.

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