II-VI (IIVI) earnings release on August 13th was a mixed bag. The company managed to beat both EPS and revenue estimates, but guidance for FQ1 2020 disappointed those who had expected more. Generally speaking, investors attach more importance to guidance as markets are forward-looking. So disappointing guidance tends to outweigh good quarterly results.
The outlook for FQ1 2020 calls for a significant slowdown in growth from double digits to single digits. If that isn't bad enough, there is reason to believe that this slowdown in growth is here to stay and not some