The 10-second takeaway
For the quarter ended March 31 (Q2), Coherent met expectations on revenues and whiffed on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Coherent logged revenue of $193.3 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $196.1 million on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $200.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The seven earnings estimates compiled by S&P Capital IQ forecast $0.81 per share. GAAP EPS of $0.67 for Q2 were 27% lower than the prior-year quarter's $0.92 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 400 basis points worse than the prior-year quarter. Operating margin was 10.5%, 260 basis points worse than the prior-year quarter. Net margin was 8.4%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $210.9 million. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $816.8 million. The average EPS estimate is $3.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 77 members out of 89 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Coherent a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coherent is buy, with an average price target of $69.31.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.