Coherent Q1 revenue beats estimates on datacenter & communications segment strength
Overview
US photonics supplier's fiscal Q1 revenue rose 50% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 beat consensus, up 80% yr/yr
Company attributes margin gains to pricing optimization and cost improvements
Outlook
Coherent expects Q2 revenue between $2.55 bln and $2.75 bln
Company sees Q2 non-GAAP EPS between $2.28 and $2.48
Coherent expects to achieve first $3 bln revenue quarter by end of fiscal 2027
Result Drivers
DATACENTER & COMMUNICATIONS GROWTH - Revenue in the Datacenter & Communications segment rose to $1.95 bln from $1.09 bln yr/yr, driving overall sales growth
AI-DRIVEN OPTICAL DEMAND - CEO said transition of AI datacenters from copper to optical connectivity is fueling demand for photonics products
PRICING OPTIMIZATION & COST IMPROVEMENTS - CFO said margin expansion was driven by pricing optimization and cost improvements
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $2.37 bln | $2.31 bln (19 Analysts) |
Q1 Adjusted EPS | Beat | $2.09 | $1.97 (21 Analysts) |
Q1 Adjusted Net Income | Beat | $422 mln | $404.14 mln (18 Analysts) |
Q1 Adjusted Operating Income | Beat | $550 mln | $526.61 mln (19 Analysts) |
Q1 Adjusted Operating Margin | 23.20% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Coherent Corp. is $420.00, about 102.4% above its November 3 closing price of $207.49
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 32 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)