Benzinga | May 6, 2021 11:42AM EDT

II-VI Shares Are Trading Lower Despite Q3 Earnings Beat As Q4 EPS Outlook Falls Short

* II-VI Inc (NASDAQ: IIVI) reported third-quarter FY21 revenue growth of 25% year-on-year to $783 million, beating the analyst consensus of $772.27 million.

* Photonic Solutions revenue rose 21.6% Y/Y to $508 million, and Compound Semiconductors revenue rose 31.5% Y/Y to $275.3 million.

* The Book-to-bill ratio stands at 1.08, and a backlog hit a record $1.13 billion.

* Non-GAAP gross profit rose 26.6% Y/Y with margins expanding 60 basis points to 38.9%.

* Non-GAAP operating income rose 63% Y/Y with margins expanding 420 basis points to 18%.

* Non-GAAP net earnings rose 152.8% Y/Y to $111.5 million. Adjusted EPS of $0.91 beat consensus of $0.88.

* The company held $1.5 billion in cash and equivalents and generated $446.9 million in operating cash flow.

* Guidance: II-VI sees a Q4 revenue outlook of $752 million to $802 million compared to the analyst consensus of $798.76 million. Adjusted EPS outlook of $0.63 to $0.83 is lower than the analyst consensus of $0.91.

* The supply chain and global manufacturing operations teams kept pace with the demand to deliver above the top end of the guidance, keeping the company optimistic about the future, Dr. Mattera said.

* Price action: IIVI shares traded lower by 3.89% at $62.08 on the last check Thursday.