Why Coherent Shares Ran Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Coherent (NASDAQ: COHR  ) ran higher by as much as 16% after the company reported fiscal second-quarter earnings.

So what: Revenue in the quarter added up to $200.1 million, with adjusted earnings per share of $0.84. Both headline figures were ahead of consensus forecasts, which were perched at $198.2 million in sales and an adjusted profit of $0.80 per share. CEO John Ambroseo said demand in Coherent's commercial end markets improved, resulting in record bookings for materials processing.

Now what: The recent acquisition of Lumera Laser helped boost medical OEM application bookings to all-time highs, and the only segment to see weakness was the research market, in part because of sequestration in the United States. Revenue in the coming quarter is expected to be in the range of $200 million to $212 million, the midpoint of which is higher than the $204 million consensus. Needham & Co. has upgraded Coherent to "buy" with a $65 price target, citing improving demand.

Interested in more info on Coherent? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2387953, ~/Articles/ArticleHandler.aspx, 11/28/2014 12:31:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement