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II-VI's Advanced Modulators to Improve Materials Processing

Zacks Equity Research

II-VI Incorporated IIVI recently launched electro-optic modulators, designed to improve efficiencies of laser-based materials processing.

Leveraging the patented crystal technology, the company’s electro-optic modulators empower the ultrafast lasers with the capacity to produce a rapid series of energy pulses with high control. This facilitates manufacturers in performing several machining tasks, including drilling, scribing and marking at a rapid rate, with high accuracy.

As noted, the manufacturing process of II-VI’s advanced modulators is vertically integrated, ranging from its own beta-barium borate crystals to the procedure of fabricating and device assembling. This allows the company to offer its customers a high performance and cost-effective solution for applications in materials processing.

The company uses its acousto-optic, electro-optic, as well as magneto-optic materials and technology platforms for its various ultrafast laser designs. Notably, II-VI’s extensive portfolio of ultrafast lasers components comprises wavelength-stabilized pump laser modules, seed lasers, diffractive gratings, dispersion-compensation prism pairs and polarization-mode combiners, among others. It’s worth mentioning that the company’s lithium triborate and beta-barium borate crystals help in transforming the ultrafast lasers from infrared to ultraviolet at 355 nm.

Zacks Rank & Price Performance

II-VI, which has a market cap of roughly $3.4 billion, currently carries a Zacks Rank #5 (Strong Sell). Analysts have become increasingly bearish about the company over the past month. Its earnings estimates for fiscal 2020 (ending June 2020) have decreased from $1.86 to $1.79 while the same for fiscal 2021 (ending June 2021) has moved down from $2.69 to $2.63.

In the past six months, the company’s shares have lost 0.5% against the industry’s growth of 17.7%.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Berry Global Group, Inc. BERY, SPX FLOW, Inc. FLOW and ABB Ltd ABB. While Berry Global and SPX FLOW sport a Zacks Rank #1 (Strong Buy), ABB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Berry Global delivered positive earnings surprise of 0.70%, on average, in the trailing four quarters.

SPX FLOW delivered positive earnings surprise of 6.95%, on average, in the trailing four quarters.

ABB delivered positive earnings surprise of 2.89%, on average, in the trailing four quarters.

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