Barrington Research Remains Cautious On II-VI

In a report published Wednesday, Barrington Research analyst Ted Moreau Jr. reiterated a Market Perform rating on II-VI (NASDAQ: IIVI).

In the report, Barrington Research noted, “II‐VI guided FQ2 revenue to $172‐180 million, down 5.3% sequentially at the midpoint and below our $178.6 million estimate. Management indicated FQ2 is their seasonally softest quarter of the year, though given the weak Military market and our previously highlighted concerns about the communications end market in the Photonics segment, we are modeling FQ3 revenue flat with FQ2 before seeing revenue growth in FQ4. Our FY/15 revenue and EPS estimates go to $726 million and $0.66, respectively, versus $715 million and $0.73 previously. Our lower EPS estimate is largely due to higher operating expenses than we previously anticipated.”

II-VI closed on Tuesday at $13.43.