Coherent (COHR) Shines with Q2 Earnings Beat, Signals Bullish Outlook for 2024

$COHR(COHR)

Coherent (COHR) has defied economic headwinds to report a notable second-quarter performance, ending December 2023, with a slight year-over-year revenue dip to $1.13 billion, yet surpassing the Zacks Consensus Estimate of $1.12 billion. The earnings per share (EPS) settled at $0.36, down from the previous year's $0.95, but significantly ahead of expectations with a +56.52% EPS surprise.

Segment-wise, the Networking division led with $524.20 million in revenue, outperforming analyst predictions of $510.13 million. The Lasers and Materials segments also exceeded forecasts, registering revenues of $353.50 million and $253.70 million, respectively, against estimates.

Despite a revenue decrease, Coherent's EPS outshone projections, highlighting its profit retention capability amidst economic pressures. Looking ahead to the third quarter ending in March, Coherent anticipates EPS between $0.32 and $0.52, aligning closely with a $0.38 consensus. Revenue forecasts range from $1.12 to $1.20 billion, suggesting a steady operational outlook.

Elevating its full-year 2024 guidance, Coherent now expects an EPS between $1.30 and $1.70, an uplift from previous estimates and indicating optimism for robust growth and profitability. Revenue projections for FY24 have been set between $4.55 and $4.70 billion, closely matching analyst expectations.

Coherent's Q2 report not only reflects its enduring strength in a volatile market but also underscores its forward-looking stance, promising continued expansion and shareholder value enhancement. As Coherent navigates through the fiscal year, its upwardly revised guidance and resilient performance position it as a compelling watch for investors tracking its sustained momentum.

COHR shares have marched about 8% higher in thin after hours trade following the earnings release.