Zinger Key Points
- Coherent Q2 sales beat estimates at $1.44B; adjusted EPS $0.95 vs. $0.69 consensus.
- Strong AI-driven Data Center and Telecom demand fueled record revenue.
Coherent Corp. COHR shares are trading over 17.3% at last check on Thursday after the company reported better-than-expected second-quarter results.
The company reported sales of $1.44 billion, beating the consensus of $1.37 billion. Adjusted gross margin expanded 363 bps Y/Y to 38.2% in the quarter.
Adjusted operating income surged 73.8% Y/Y to $265 million in the quarter. Adjusted EPS of $0.95 surpassed the consensus of 69 cents.
As of Dec. 31, cash and cash equivalent stood at $917.8 million.
Jim Anderson, CEO, said, “We delivered strong growth in the December quarter on both a sequential and year-over-year basis, resulting in record revenue, driven by another quarter of strong AI-related Data Center demand as well as growth in our Telecom business. We also drove significant improvement in gross margin and operating margin.”
Sherri Luther, CFO, said, “Revenue growth and margin expansion drove significant sequential and year-over-year increases in our GAAP and Non-GAAP EPS. We also paid down $132 million of our outstanding debt.“
Outlook: Coherent forecasts third-quarter FY24 revenue of $1.39 billion-$1.48 billion (vs. consensus of $1.40 billion) and adjusted EPS of $0.75-$0.95 (vs. consensus of $0.76).
Investors can gain exposure to the stock via Vanguard S&P Mid-Cap 400 Growth ETF IVOG and Vanguard S&P Mid-Cap 400 Growth ETF JMEE.
Price Action: Coherent shares are currently trading at $105.75 on Thursday morning.
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