Coherent Analysts Raise Their Forecasts After Upbeat Results

Coherent COHR reported better-than-expected second-quarter financial results on Monday.

The company reported second-quarter sales of $1.131 billion, beating the Wall Street estimate of $1.120 billion. The company reported adjusted EPS of $0.36, beating the analyst consensus of $0.26. Non-GAAP gross profit slumped 25.3% to $407.7 million. Non-GAAP gross margin contracted to 36% from 39.8%, according to data from Benzinga Pro.

“In response to customer demand, we continue to make progress toward expected commercial launch of our 1.6T transceivers and components in the first quarter of fiscal 2025,” the company said.

Coherent expects third-quarter revenue of $1.12 billion-$1.20 billion (estimate: $1.17 billion). The company forecasts adjusted earnings per share in the band of $0.32-$0.52 (estimate: $0.38). Coherent revised fiscal year 2024 revenue outlook from $4.5 billion-$4.7 billion to $4.55 billion-$4.70 billion (estimate: $4.59 billion). The company boosted the adjusted earnings per share outlook from $1.00-$1.50 to $1.30-$1.70 (estimate: $1.28).

Coherent shares gained 17.4% to close at $58.00 on Tuesday.

These analysts made changes to their price targets on Coherent after the company reported quarterly results.

• Rosenblatt boosted the price target on Coherent from $44 to $76. Rosenblatt analyst Mike Genovese maintained a Buy rating.
• Susquehanna raised the price target on Coherent from $35 to $55. Susquehanna analyst Mehdi Hosseini maintained a Neutral rating.
• On Tuesday, Needham raised the price target on Coherent from $52 to $64. Needham analyst James Ricchiuti maintained a Buy rating.

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