Coherent Q1 revenue up 17%, beats estimates

Coherent

05/11/2025 22:06

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/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.58 bln
$1.53 bln (17 Analysts)
Q1 Adjusted EPS
Beat
$1.16
$1.04 (18 Analysts)
Q1 Adjusted Operating Margin
19.50%


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 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: ID:nGNX1Q0C93

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)