This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

II-VI Shares Tumble On Weak Outlook

NEW YORK (AP) â¿¿ Shares of II-VI Inc. tumbled more than 10 percent Friday after the manufacturer cut its fiscal fourth-quarter outlook, citing the continued drop in prices of a key material that it makes, and issued a weak guidance for the upcoming fiscal year.

THE SPARK: For the fiscal fourth quarter, which ends June 30, the company now expects a profit of 23 cents to 25 cents per share on $135 million to $137 million in revenue. Analysts, on average, expect a profit of 29 cents per share on $141.1 million in revenue, according to a FactSet poll.

II-VI, which makes a variety of optical components, metals and chemicals, had previously predicted profit of 27 cents to 31 cents per share on $139 million to $142 million in revenue.

The Saxonburg, Pa., company said late Thursday that it expects its results to increase sequentially quarter-by-quarter as the year progresses. But its forecast for the upcoming year, ending in June 2013, also fell well short of analysts' predictions. It sees profit of $1.14 to $1.21 per share, when analysts were estimating $1.36 per share.

THE BIG PICTURE: II-VI said the value of its stock of tellurium, a metal it makes that's used in alloys and solar panels, has dropped because the metal's price is dropping as a result of volatility in the global solar panel market.

Strong production in China and weakening demand in Europe caused too much supply of solar panels and a collapse in prices.

II-VI said it expects a write-down of $1.7 million to $1.9 million, or 3 cents per share, for the current quarter on its inventory of the metal.

The company's profit prediction for the full fiscal year also was well below analysts' expectations. It plans to release full results before the market opens on Aug. 2.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs