=II-VI (IIVI) reported earnings on Wed 9 Feb 22 (b/o)

 

II-VI beats by $0.06, misses on revs; guides Q3 EPS in-line, revs below consensus

• Reports Q2 (Dec) earnings of $0.92 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of $0.86; revenues rose 2.6% year/year to $807 mln vs the $817.14 mln S&P Capital IQ Consensus.
• Record bookings of $1.1 billion, grew 21% year over year.
• Co issues guidance for Q3, sees EPS of $0.75-$0.90 vs. $0.87 S&P Capital IQ Consensus; sees Q3 revs of $785-$825 mln vs. $830.35 mln S&P Capital IQ Consensus.

Earnings this week : Feb 7 - 11, 2022 (wk 6)

Monday (Feb 7)

• Morning:  AMG CRNC CNA ENR GTES HAS ON TSN ZBH
• Afternoon: ACM AOSL AMGN ACLS BRX CHGG DHT KMT KFRC LEG NUAN PDM PFG RMBS SLQT SPG SSD SNCY TTWO THC TDC VRNS

Tuesday (Feb 8)

• Morning: AGCO ARMK AVNT BP CARR CVE CNC CNHI COTY CTS DD EPC FISV IT HAE HOG INCY KKR LEA MBUU MAS NRZ NVT PFE POLY SPGI SYY TMHC TRI TDG VIRT VSH WMG
• Afternoon:  ATGE AIZ ATO AZTA CMG CNO CMP CRSR CCK DCPH APPS DEI DOCS EGP ENPH ESE FLT FMC GFS PEAK HIW HUBG ICHR INSP JKHY LBRT LYFT MNDT MODN NCR NEWR OMC ONTO PAYC PTON QGEN QNST SCSC SAVE STEP STE TRMB TSE UDR VVV VREX VOYA XPO YUMC

Wednesday (Feb 9)

• Morning:  ARCC AVYA BDC BXMT BG CCJ CGC CDW CHEF CME CRTO CVS FOXA HMC IIVI LAD MSGE NNN PAG PFGC RDWR REYN SITC TEVA TGI YUM
• Afternoon:  TWOU AEIS AFG NLY ACGL ASGN BKH CDAY CHX CPA CXW DCP DIOD ENS NVST EQT EFX EQC EEFT RE FR FLNC FWRD ULCC GFL PI IFF IRBT ITT KN RAMP LUMN MFC MAT MDU MESA MGM MC MOH MSI ORLY PEP PPC PAA RPD REXR SGEN SONO SPSC SLF TTMI TWLO TWO UBER UDMY VMEO DIS WTS ZNGA

Thursday (Feb 10)

• Morning: ALNY MT AZN CAMT GOOS ECOM KO CIGI CYBR DDOG DBD DTE DUK FAF GPN GPI HRI HII INMD NSIT IPG K KIM LH LCII LECO LIN MAC MLM MCO PATK PTEN PBF BTU PCG PM PIPR PDS ROLL SSTK SON TPR TTGT TU TUFN TWTR WSO WEX ZBRA
• Afternoon:  ME AFRM AVLR BIO BL BE BHF ELY CSL CC NET COHU CFLT OFC COUR DVA DXCM EQH EXPE FRT FE FLO FRSH GDDY HUBS ILMN NSP FROG MTD MHK MNTV MPWR NWE PRO QLYS REG RSG SSNC TEX RARE UPWK VRSN VCRA WU YELP ZEN ZG

Friday (Feb 11)  

• Morning:  AB AXL APO ARES BRKR CAE CLF D ENB ESNT FTS G GT GPRE IAA MGA COOP NBIX NWL NMRK PRLB SXT UAA WPC

Coherent (COHR) to be acquired by Lumentum (LITE) for $5.7 bln, creating a laser giant

• Update March 25 (Reuters) - Coherent Inc on Thursday agreed to a $7 billion buyout offer from optical components maker II-VI Inc, walking away from a bid from Apple supplier Lumentum Holdings Inc that had put the laser maker into play two months ago. (timeline)
  
• Coherent, which is paying nearly $218 million to Lumentum for terminating the deal, said it made the final call after comparing benefits and the potential risks of each proposal.

******

Coherent  (COHR) soared on Tuesday after the laser maker agreed to be acquired by rival Lumentum Holdings for $5.7 billion in cash and stock. Coherent holders will receive $100 in cash and 1.1851 Lumentum shares for each Coherent share, about $214 in value. At closing, Coherent (COHR) holders will own about 27% of the combined company. 

  

This week's biggest % winners & losers : Nov 11 - 15, 19 (wk 46)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: CLVS (6.38 +77.96%), AMRN (24.02 +43.23%), COLL (18.12 +40.97%), SGRY (11.77 +35.6%), QGEN (40.56 +32.59%), DXCM (208.37 +32.47%), EPZM (15.36 +29.62%)
• Industrials: BE (6.53 +95.51%), TGI (28.49 +29.79%), MAXR (11.5 +28.49%)
• Consumer Discretionary: LK (27.02  +45.58%), ROKU (157.30  +29.00%), IGT (15.59 +15.06%), DDS (76.87  +10.59%),  FTCH (9.67 +7.44%)
• Information Technology: LASR (20.62 +46.24%), SYNA (60.37 +34.04%), COMM (14.95 +32.18%), DXC (37.23 +31.23%), CARB (22.95 +28.86%), DDOG (40.63  +23.83%), PING (19.24  +13.11)
• Financials: TRUP (32.35 +36.21%), LTS (3.48 +32.82%)
• Energy:  TNK (2.39  +26.46%)

This week's top % losers

• Healthcare: ANAB (11.1 -71.29%)
• Industrials: AFI (3.73 -41.26%), NSP (72.9 -32.29%)
• Consumer Discretionary: PRTY (1.89 -66.61%), MOD (7.54 -34.94%), EXPE (95.67 -30.57%), SDC (8.60  -25.80%)
• Information Technology: RBBN (2.75 -38.82%), PLT (26.22 -35.39%), IIVI (29.44  -17.67%)
• Energy: EXTN (7.56 -41.89%), GLOG (9.64 -31.58%)

=II-VI (IIVI) reported earnings on Tue 12 Nov 19 (b/o)

II-VI misses by $0.03, beats on revs; guides Q2 EPS below consensus, revs below consensus

Reports Q1 (Sep) earnings of $0.57 per share, excluding non-recurring items, $0.03 worse than the S&P Capital IQ Consensus of $0.60; revenues rose 8.3% year/year to $340.4 mln vs the $335.73 mln S&P Capital IQ Consensus.

Co issues downside guidance for Q2, sees EPS of $0.20-0.50, excluding non-recurring items, vs. $0.64 S&P Capital IQ Consensus; sees Q2 revs of $590-630 mln vs. $652.25 mln S&P Capital IQ Consensus.

Co said "Growth in our commercial markets was mixed during the first quarter as it was affected by well-known macro factors, including the recent overall slowing in industrial demand. However, we remain optimistic about the long-term growth prospects for all of our commercial end markets. Our Aerospace and Defense business delivered a very strong quarter, in part due to the successful integration of recent acquisitions. We have also put in place the measures to operate the Finisar WSS business separately as required by regulators due to the strong market position of both companies. We are ready to capitalize on new opportunities from the expected rapid growth in our key end markets."

Earnings this week : Nov 11 - 15, 19 (wk 46)

Monday (Nov 11)

• Morning: FOLD CRR QRTEA
• Afternoon: APYX DXC FGEN FLNT FNV FTK GO HBM ICUI TDW TERP TME UGI

Tuesday (Nov 12)

• Morning: AAP ACM AEIS BPMP CBS CNNE CRON CVET DF DHI DPLO DSKE EBIX EDIT EGRX EPC ERJ GTT IAA IIVI INFN KEM MPAA OSTK PSN RDNT ROK SAGE SE TSN XON
• Afternoon: ADPT ADT APEI BREW CBPX CDLX CPRX DDOG DOX HALO HCAT HIIQ HTHT HUYA KWR MCRN MTSI OMER PTE RUN SCSC SDC SENS SSTI SWKS TLRY TVTY TWOU VRAY VREX YY

Wednesday (Nov 13)

• Morning: BEST CAE CMCM ENR FVRR GOOS LK MTOR SPB SSYS TSEM VIPS
• Afternoon: BZH CHNG CBPO CSCO CPA HI HOLI NTAP PSNL PRSP TGP TNK TTEK TCOM

Thursday (Nov 14)

• Morning: BAM CHC CTRA GDS IGT NBEV NICE RUBY SINA TUFN VIAB WMT WB WIX ZEAL
• Afternoon: AMAT AXNX DLB FTCH FSM GLOB HP KLIC NVDA VFF WPM

Friday (Nov 15) 

• Morning: JCP JD

=II-VI (IIVI) reported earnings on Thur 31 Jan 2019 (b/o)

II-VI beats by $0.04, beats on revs; guides Q3 EPS in-line, revs in-line

• Reports Q2 (Dec) earnings of $0.71 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $0.67; revenues rose 21.8% year/year to $342.9 mln vs the $339.17 mln S&P Capital IQ Consensus.
• Co issues in-line guidance for Q3, sees EPS of $0.60-0.69, excluding non-recurring items, vs. $0.66 S&P Capital IQ Consensus; sees Q3 revs of $335-343 mln vs. $339.16 mln S&P Capital IQ Consensus. 
• "We achieved record bookings of $377 million, record revenue of $343 million and grew our backlog to $513 million. The optical communications market was very strong, we launched our GaN on SiC device development to address the accelerating 5G market, and we booked several large orders for SiC substrates from customers servicing the growing electric vehicle market. We believe all of these drivers will remain strong. During the quarter, we announced our exciting plan to acquire Finisar (FNSR), and we began our integration planning. Additionally, the U.S. HSR waiting period recently expired and we received clearance from the German competition authority. In the meantime, we remain intensely focused on cost control and operating performance. During the quarter, we generated $69 million in cash flow from operations and repaid $60 million of outstanding debt."

-=Lumentum (LITE) lowers Q2 guidance based on reduced shipments of its 3D sensing lasers

• Lumentum (LITE) cuts Q2 guidance based on what seems like reduced shipments for its 3D sensing lasers, a key component for Face ID in the iPhone , noting "We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter."

• Lowers Q2 EPS to $1.15-1.34 from $1.60-1.75 vs $1.67 S&P Capital IQ Consensus; revs to $335-355 mln from $405-430 mln vs $420.47 mln S&P Capital IQ Consensus
• "We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter," said Alan Lowe, President and CEO. "With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing."
• Note the customer is likely Apple (AAPL), which seems to confirm shipment cuts reported by Nikkei last Monday.
• Lumentum is the main supplier for vertical-cavity surface-emitting lasers (VCSELs), which enable 3D sensing (Face ID) technology in Apple's (AAPL -2.8%) iPhone. This jives with what the Nikkei reported one week ago, that Apple had recently cut orders for the iPhone XR and increased orders for the iPhone 8 and 8 Plus. The iPhone XR is the newest lower cost option while the 8/8+ are last year's cheaper models without 3D sensing/Face ID capability.
• Recall Apple offered soft guidance for the holiday quarter on November 1 while announcing it will no longer disclose product shipment disclosures going forward. Apple is using higher priced iPhones to drive growth in a stagnant/saturated smartphone market where the replacement cycle is getting longer. Bernstein said Apple's guidance implied shipments down 5-10% year-over-year.
• The number two and three VCSEL suppliers II-VI (IIVI -2.7%) and Finisar (FNSR -3.4%) announced a merger on Friday morning.

=Finisar (FNSR) to be acquired by II-VI (IIVI) for $26.00 per share

Finisar to be acquired by II-VI (IIVI) in cash and stock transaction, valued at $26.00 per share 

• II-VI Incorporated (IIVI) and Finisar (FNSR) announced that they have entered into a definitive merger agreement under which II-VI will acquire Finisar in a cash and stock transaction with an equity value of approximately $3.2 billion.
• Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, Finisar's stockholders will receive, on a pro-rated basis, $15.60 per share in cash and 0.2218x shares of II-VI common stock, valued at $10.40 per share based on the closing price of II-VI's common stock of $46.88 on November 8, 2018. The transaction values Finisar at $26.00 per share, or approximately $3.2 billion in equity value and represents a premium of 37.7% to Finisar's closing price on November 8, 2018. Finisar shareholders would own approximately 31% of the combined company.
• Transaction Details - II-VI intends to fund the cash consideration with a combination of cash on hand from the combined companies' balance sheets and $2 billion in funded debt financing. The transaction is expected to close in the middle of calendar year 2019, subject to approval by each company's shareholders, antitrust regulatory approvals and other customary closing conditions.

=II-VI (IIVI)

Electronic component manufacturing company

• Headquarters: Saxonburg, PA
• Founded: 1971
• ii-vi.com

Description

II-VI Incorporated develops and manufactures engineered materials, optoelectronic components and products. The Company has three segments: II-VI Laser Solutions, II-VI Photonics and II-VI Performance Products. The II-VI Laser Solutions segment designs, manufactures and markets optical and electro-optical components and materials sold under the II-VI Infrared brand name and used in carbon dioxide (CO2) lasers, fiber-delivered beam delivery systems and processing tools and direct diode lasers for industrial lasers sold under the II-VI HIGHYAG and II-VI Laser Enterprise brand names. The II-VI Photonics segment manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other consumer and commercial applications. The II-VI Performance Products segment designs, manufactures and markets infrared optical components and high-precision optical assemblies for military, medical and commercial laser imaging applications.

Key stats and ratios

	Q3 (Sep '17)	2017
Net profit margin	8.08%	9.80%
Operating margin	11.68%	12.92%
EBITD margin	-	19.47%
Return on average assets	5.54%	7.09%
Return on average equity	9.20%	11.32%
Employees	10,349

=Finisar (FNSR) to receive $390 mln as part of Apple's advanced manufacturing fund

Finisar is a manufacturer of optical communication components and subsystems. In 2008, Finisar merged with Optium Corporation.

• Headquarters: Sunnyvale, CA
• finisar.com
• Face ID tech company

• LITE also makes VCSELs for 3D sensing. IIVI is also in the space.

Finisar to receive $390 mln as part of Apple's advanced manufacturing fund  

Apple (AAPL) announced the latest award from its $1 billion Advanced Manufacturing Fund. Finisar, a leading manufacturer of optical communications components, will receive $390 million as part of Apple's commitment to support innovation and job creation by American manufacturers.

• As a result of Apple's commitment, Finisar will transform a long-shuttered, 700,000-square-foot manufacturing plant in Sherman, Texas, into the high-tech VCSEL capital of the US.

The award will enable Finisar (FNSR) to exponentially increase its R&D spending and high-volume production of vertical-cavity surface-emitting lasers (VCSELs). VCSELs power some of Apple's most popular new features, including Face ID, Animoji and Portrait mode selfies made possible with the iPhone X TrueDepth camera, as well as the proximity-sensing capabilities of AirPods.

VCSEL technology is a better performing, more compact and cost-efficient solution compared to traditional edge-emitting lasers for many emerging applications. Apple has rapidly adopted depth-sensing technology in recent years, leading to the development and production of the most advanced VCSELs used in the history of consumer electronics. In the fourth quarter of 2017, Apple will purchase 10 times more VCSEL wafers than were previously manufactured worldwide over a similar time period.

Description

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company's optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

Key stats and ratios

	Q4 (Oct '17)	2017
Net profit margin	1.76%	17.20%
Operating margin	2.85%	12.20%
EBITD margin	-	18.77%
Return on average assets	0.90%	11.92%
Return on average equity	1.45%	18.26%
Employees	14,000