The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Coherent missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Coherent recorded revenue of $183.2 million. The seven analysts polled by S&P Capital IQ expected revenue of $186.2 million on the same basis. GAAP reported sales were 4.0% lower than the prior-year quarter's $190.8 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 six earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share. GAAP EPS of $0.58 for Q1 were 18% lower than the prior-year quarter's $0.71 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 42.4%, 30 basis points better than the prior-year quarter. Operating margin was 11.2%, 210 basis points worse than the prior-year quarter. Net margin was 7.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $191.8 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $786.0 million. The average EPS estimate is $3.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 83 members out of 96 rating the stock outperform, and 13 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Coherent a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coherent is outperform, with an average price target of $58.04.
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