Needham & Company Reiterates a 'Buy' on II-VI, Inc. (IIVI); Reaffirms Guidance, But Expected Selloff In Optical Space Could Weigh
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Price: $41.95 --0%
Rating Summary:
17 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
17 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company reiterates a 'Buy' on II-VI, Inc. (NASDAQ: IIVI), PT $65.
Needham analyst says, "IIVI after the market close yesterday reiterated its FQ4 (June) outlook and provided F12 revenue and EPS guidance that was in line with consensus. Given the likely sell-off in the optical components sector this morning following Finisar's (Nasdaq: FNSR)(NotRated) cautious guidance and the broader market malaise, we would not be surprised to see IIVI shares dinged at the open despite the company's generally solid F12 guidance. We would view any weakness as a buying opportunity. We believe the diversity of IIVI's business model helps insulate the company from industry-specific weakness, notably the telecom space, which we estimate at less than 15% of IIVI's total revenues. To that end, management said IIVI is entering F12 with a record backlog, with particular strength in infrared optics and the industrial markets."
"The company's guidance appears to have already discounted current conditions in the telecom market, particularly in its Photop business in China. The F12 outlook also assumes scaled-back expectations for IIVI's military business, which we estimate at around 30-35% of revenues. Specifically, management reaffirmed its FQ4 EPS guidance of $0.68-$0.73 (consensus is $0.72) and revenue guidance of $129M-$134M (consensus is $134M). For F12, management expects revenues of $565M-$580M (consensus is $561M) and EPS of $2.80-$2.95 (before giving effect to the company's previously announced 2-for-1 stock split), compared with consensus expectations of $2.95. We continue to estimate F12 revenues at $566M and EPS of $2.92."
For more ratings news on II-VI, Inc. click here and for the rating history of II-VI, Inc. click here.
Shares of II-VI, Inc. closed at $49.17 yesterday.
Needham analyst says, "IIVI after the market close yesterday reiterated its FQ4 (June) outlook and provided F12 revenue and EPS guidance that was in line with consensus. Given the likely sell-off in the optical components sector this morning following Finisar's (Nasdaq: FNSR)(NotRated) cautious guidance and the broader market malaise, we would not be surprised to see IIVI shares dinged at the open despite the company's generally solid F12 guidance. We would view any weakness as a buying opportunity. We believe the diversity of IIVI's business model helps insulate the company from industry-specific weakness, notably the telecom space, which we estimate at less than 15% of IIVI's total revenues. To that end, management said IIVI is entering F12 with a record backlog, with particular strength in infrared optics and the industrial markets."
"The company's guidance appears to have already discounted current conditions in the telecom market, particularly in its Photop business in China. The F12 outlook also assumes scaled-back expectations for IIVI's military business, which we estimate at around 30-35% of revenues. Specifically, management reaffirmed its FQ4 EPS guidance of $0.68-$0.73 (consensus is $0.72) and revenue guidance of $129M-$134M (consensus is $134M). For F12, management expects revenues of $565M-$580M (consensus is $561M) and EPS of $2.80-$2.95 (before giving effect to the company's previously announced 2-for-1 stock split), compared with consensus expectations of $2.95. We continue to estimate F12 revenues at $566M and EPS of $2.92."
For more ratings news on II-VI, Inc. click here and for the rating history of II-VI, Inc. click here.
Shares of II-VI, Inc. closed at $49.17 yesterday.
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