II-VI (IIVI) Estimates, PT Raised at Needham & Company

Needham & Company analyst James Ricchiuti raised estimates and his price target on Buy-rated II-VI, Inc. (NASDAQ: IIVI) to $18.00 (from $16.00) following Q2 results.

Ricchiuti commented, "IIVI shares rose 15% yesterday on signs that its earnings turnaround is gaining momentum. FQ2 EPS (excluding a one-time settlement and tax benefit) came in above prior guidance, marking the 4th consecutive quarter that EPS exceeded Street expectations. FQ3 guidance was better than expected, and more importantly management now expects to see a 250 basis point improvement in full-year gross margin, operating margin and EBITDA margins, significantly better than it was guiding to three months ago. To be sure, IIVI still has challenges, including sluggish top-line growth, particularly in the optical communications market. That said, we have been encouraged by the steady improvement at IIVI and believe the stock can continue to move higher as management executes on the turnaround. We reiterate our Buy rating."

The firm is increasing F15 EPS estimate to $0.85 (excluding $0.11 gain from settlement related to payment obligations from recent acquisitions) from $0.74. They are increasing our F16 EPS estimate to $0.98 from $0.92.

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 $16.11 yesterday.

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