In 3 of their last 4 reports, II-VI has delivered upside surprises; averaging 6% more than expected. II-VI's top line has also grown impressively at it has posted four straight quarters of record revenue.
The Correct Call expects more of the same as last quarter IIVI's backlog grew by almost $5.5 million to a staggering $122 million. This record level of backlog pretty much guarantees another record quarter to be "in the bag."
Adding to our confidence in IIVI's performance is the company's preannouncement of preliminary record revenues of $81 million and bookings of $93 million for the quarter ended March 31.
IIVI has a history of rallying in the weeks following its earnings releases as a move of more than 10% is not uncommon.
Aggressive investors should consider the July 40 Call options trading near $3.30. If IIVI share price were $40 by June 1st, the July 50 Calls would be priced around $5.40 per contract; a potential profit of 64%.
Not only do we believe IIVI is good for a short term trade, during the next 3-to-6 months IIVI could boost your portfolio's returns.
