(IIVI) - reported fiscal-fourth quarter earnings that easily topped last year's results and the consensus estimate

II-VI Incorporated reported a strong fiscal-fourth quarter and guided higher. The company has met or exceeded analyst expectations in 13 out of the previous 14 quarters. All three analysts covering the stock have raised their estimates for this fiscal year. Over the past month, this year's estimates have risen 9.5% to $1.15 per share. Full Analysis II-VI Incorporated (IIVI) engages in the development, manufacture, and marketing of materials and derivative products for precision use in industrial, medical, military, security, and aerospace applications. It offers laser-related products, including laser gain materials for solid-state lasers and optical elements used to focus and direct laser beams to target or work surfaces. The company also provides military infrared products, including missile domes, electro-optical windows and subassemblies, imaging lenses, and other components. It manufactures waveplates, polarizers, lenses, prisms, and mirrors for visible and near-infrared applications, which are used to control or alter visible or near-infrared energy and its polarization. It sells its products to original equipment manufactures, system integrators, laser end users, and military and aerospace customers. IIVI reported fiscal-fourth quarter earnings that easily topped last year's results and the consensus estimate. The company earned 31 cents per share, 24% ahead of estimates, and well above last year's 23 cents. Revenues for the quarter increased 14% to $65 million. Management proceeded to guide higher going forward. For the fiscal year ending June 30, 2007, the Company expects revenues to range from $261 million to $267 million and earnings per share to range from $1.08 to $1.17. Analysts had expected $1.05 per share a month ago. Francis J. Kramer, president and chief operating officer said, "We are very pleased to report solid performance for both the quarter and fiscal year ended June 30, 2006. Our Infrared Optics segment continues to benefit from an expanding worldwide base of laser systems as evidenced by our 15% or higher growth in bookings and revenues for both the quarter and fiscal year. The Compound Semiconductor Group, which is focused on new product and market development, achieved its third consecutive quarter of positive contributions to II-VI earnings. Our Near-Infrared Optics segment is winning business for a critical defense system product where on-time delivery and quality have been key drivers. This has contributed significantly to the strong bookings growth for this segment." The company has met or exceeded analyst expectations in 13 out of the previous 14 quarters. All three analysts covering the stock have raised their estimates for this fiscal year. Over the past month, this year's estimates have risen 9.5% to $1.15 per share. The stock is cheap at 15.1x next year's estimate of $1.38 per share, well below the projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.76. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home