We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
II-VI (IIVI) to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
II-VI Incorporated is slated to report second-quarter fiscal 2021 (ended December 2020) results on Feb 9, before market open.
The company delivered better-than-expected results in three of the last four quarters, while meeting estimates in one. The company pulled off a trailing four-quarter earnings surprise of 79.34%, on average. Notably, its reported earnings of 84 cents in the prior quarter surpassed the Zacks Consensus Estimate of 55 cents by 52.73%.
In the past three months, shares of the company have increased 58.4% compared with the industry’s growth of 25.6%.
Factors at Play
II-VI is expected to have gained from the healthy demand for its products across key end markets in the fiscal second quarter. Further, strength across several end markets including datacom, telecom and wireless communications, along with 5G optical infrastructure buildout, is likely to have boosted the company’s revenues. Also, favorable trends across its life sciences, semiconductor capital equipment, and aerospace & defense end markets, backed by growth in bookings, are likely to have supported its revenues in the quarter.
Benefits from II-VI focus on greater operational efficacy are likely to have boosted its margins and profitability in the fiscal second quarter. In addition, the company’s solid sales channels, particularly in the transceiver market, are likely to have contributed to the quarterly performance.
Moreover, the company’s Finisar acquisition (September 2019), which has been boosting its growth opportunities in the optical communications space, is likely to have augmented its fiscal second-quarter revenues. In addition, II-VI is likely to have benefited from its solid backlog level in the fiscal second quarter, which was $899 million at the end of the previous quarter.
On the flip side, persistent weakness across the company’s automotive end market might have marred its performance. Also, it has been experiencing high costs and expenses over the past few quarters. This trend might have continued in the to-be-reported quarter and adversely impacted the company’s profitability and margin.
Amid this backdrop, the Zacks Consensus Estimate for its fiscal second-quarter revenues is currently pegged at $767 million, indicating growth of 5.4% from the quarter-ago reported number. The Zack Consensus Estimate for the company’s earnings is pegged at 90 cents per share, which indicates an increase of 7.1% from the previous quarter’s reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: II-VI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 90 cents.
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Chart Industries, Inc. (GTLS - Free Report) presently has a Zacks Rank #3 and an Earnings ESP of +0.49%.
The Middleby Corporation (MIDD - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +8.67%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
II-VI (IIVI) to Report Q2 Earnings: What's in the Cards?
II-VI Incorporated is slated to report second-quarter fiscal 2021 (ended December 2020) results on Feb 9, before market open.
The company delivered better-than-expected results in three of the last four quarters, while meeting estimates in one. The company pulled off a trailing four-quarter earnings surprise of 79.34%, on average. Notably, its reported earnings of 84 cents in the prior quarter surpassed the Zacks Consensus Estimate of 55 cents by 52.73%.
In the past three months, shares of the company have increased 58.4% compared with the industry’s growth of 25.6%.
Factors at Play
II-VI is expected to have gained from the healthy demand for its products across key end markets in the fiscal second quarter. Further, strength across several end markets including datacom, telecom and wireless communications, along with 5G optical infrastructure buildout, is likely to have boosted the company’s revenues. Also, favorable trends across its life sciences, semiconductor capital equipment, and aerospace & defense end markets, backed by growth in bookings, are likely to have supported its revenues in the quarter.
Benefits from II-VI focus on greater operational efficacy are likely to have boosted its margins and profitability in the fiscal second quarter. In addition, the company’s solid sales channels, particularly in the transceiver market, are likely to have contributed to the quarterly performance.
Moreover, the company’s Finisar acquisition (September 2019), which has been boosting its growth opportunities in the optical communications space, is likely to have augmented its fiscal second-quarter revenues. In addition, II-VI is likely to have benefited from its solid backlog level in the fiscal second quarter, which was $899 million at the end of the previous quarter.
On the flip side, persistent weakness across the company’s automotive end market might have marred its performance. Also, it has been experiencing high costs and expenses over the past few quarters. This trend might have continued in the to-be-reported quarter and adversely impacted the company’s profitability and margin.
Amid this backdrop, the Zacks Consensus Estimate for its fiscal second-quarter revenues is currently pegged at $767 million, indicating growth of 5.4% from the quarter-ago reported number. The Zack Consensus Estimate for the company’s earnings is pegged at 90 cents per share, which indicates an increase of 7.1% from the previous quarter’s reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: II-VI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 90 cents.
IIVI Incorporated Price and EPS Surprise
IIVI Incorporated price-eps-surprise | IIVI Incorporated Quote
Zacks Rank: II-VI currently has a Zacks Rank #3.
Key Picks
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Axon Enterprise, Inc (AXON - Free Report) has an Earnings ESP of +2.34% and it carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chart Industries, Inc. (GTLS - Free Report) presently has a Zacks Rank #3 and an Earnings ESP of +0.49%.
The Middleby Corporation (MIDD - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +8.67%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>