Overview

* Coherent fiscal Q1 revenue grows 17% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus, reflecting strong demand in AI-related sectors

* Company completed sale of Aerospace and Defense business, boosting gross margin and EPS

Outlook

* Coherent expects Q2 revenue between $1.56 bln and $1.70 bln

* Company anticipates Q2 non-GAAP EPS between $1.10 and $1.30

* Coherent forecasts Q2 non-GAAP gross margin of 38% to 40%

Result Drivers

* AI DEMAND - Strong demand from AI-related datacenters and communications drove revenue growth, according to CEO Jim Anderson

* BUSINESS SALE - Sale of Aerospace and Defense business boosted gross margin and EPS

* DEBT REFINANCING - Debt refinancing reduced interest expense and strengthened balance sheet, per CFO Sherri Luther

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $1.58 $1.53

Revenue bln bln (17

Analysts

)

Q1 Beat $1.16 $1.04

Adjusted (18

EPS Analysts

)

Q1 19.50%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "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 ( COHR ) is $120.00, about 7.2% below its November 4 closing price of $128.70

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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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.)