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Coherent Corp (COHR)
NYSE:COHR
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Coherent Corp
(NYSE:COHR)
68Neutral
Positive Factors
Earnings
Coherent reported third-quarter earnings that beat the Street’s expectations, which were fueled by AI data center–related revenue growth as well as operational improvements boosting gross margin and profitability.
Market Position
There is a belief that COHR is gaining market share in Datacom transceivers as Cloud builders shift their supply chains away from China.
Product Development
New products such as 1.6 T transceivers and 400 G EML are expected to help drive growth.
Negative Factors
Macro Factors
Visibility concerns due to macro factors have caused analysts to lower the target price from $105 to $95.
Market Risks
The Industrial segment is identified as having the most significant tariff and macroeconomic risks.
Noncore Activities
The potential upside from AI demand for transceivers is being muted by the noncore activities.
Coherent Corp (COHR) vs. S&P 500 (SPY)
Market Cap
$12.54B
Dividend YieldN/A
Average Volume (3M)4.31M
Price to Earnings (P/E)―
Beta (1Y)3.27
Revenue Growth21.68%
EPS Growth92.07%
CountryUS
Employees26,157
SectorTechnology
Sector Strength82
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.91
Shares Outstanding155,440,610
10 Day Avg. Volume4,328,676
30 Day Avg. Volume4,305,819
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)1.12
Price to Sales (P/S)0.00
P/FCF Ratio39.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$89.93Price Target Upside14.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Coherent Corp Business Overview & Revenue Model
Company DescriptionCoherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications. It operates in two segments, Original Equipment Manufacturers (OEM) Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used for applications in microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California. As of July 1, 2022, Coherent, Inc. operates as a subsidiary of II-VI Incorporated.
How the Company Makes MoneyCoherent Corp generates revenue through the sale of its photonic and laser-based products and solutions. The company's primary revenue streams include the sale of laser systems, which are used in various industrial and scientific applications, and optical components, which are critical in precision optics. Additionally, Coherent engages in service contracts and maintenance agreements, providing ongoing support and upgrades to its systems, which contribute to recurring revenue. The company also benefits from strategic partnerships and collaborations with other technology firms, enhancing its market reach and innovation capabilities. Coherent's diverse product offerings and global customer base enable it to maintain a robust revenue model centered around cutting-edge technology and customized solutions for its clients.
Coherent Corp Financial Statement Overview
Summary
Coherent Corp's financial statements depict a company navigating through challenges while maintaining some fundamental strengths. Revenue and profitability fluctuations highlight operational challenges, yet the balance sheet remains relatively stable with manageable leverage. Strong cash flow management is a positive aspect, offering some resilience against financial volatility. Continued focus on improving profitability and managing debt levels will be crucial for future growth.Income Statement
Coherent Corp's income statement reveals a mixed performance. The gross profit margin is strong, reflecting good cost management, but the company is facing challenges with profitability as indicated by negative net income in several periods. Revenue growth is inconsistent, with fluctuations over the years. The recent TTM period shows improvement in net income, though EBIT remains negative, suggesting ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet indicates a moderately stable financial position. The debt-to-equity ratio shows some leverage, but it remains within manageable levels. Return on equity has been inconsistent, reflecting fluctuating net income. The equity ratio suggests a balanced approach towards financing, though the recent increase in total liabilities must be monitored.58
Neutral
Cash Flow
Cash flow analysis suggests a reasonably healthy cash generation capability. Operating cash flow has been positive and growing, which is a good sign of operational efficiency. Free cash flow growth has been strong, although capital expenditures have been significant. The company maintains a solid operating cash flow to net income ratio, indicating efficient cash conversion.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.31B | 4.71B | 5.16B | 3.32B | 3.11B | 2.38B | Gross Profit |
| 1.77B | 1.46B | 1.62B | 1.27B | 1.22B | 819.55M | EBIT |
| 354.15M | 123.17M | 50.41M | 116.28M | 142.42M | -195.40M | EBITDA |
| 929.37M | 682.94M | 613.00M | 689.84M | 682.56M | 246.36M | Net Income Common Stockholders |
| 36.34M | -279.51M | -259.46M | 234.76M | 297.55M | -67.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 917.82M | 926.03M | 833.33M | 2.58B | 1.59B | 493.05M | Total Assets |
| 14.20B | 14.49B | 13.71B | 7.84B | 6.51B | 5.23B | Total Debt |
| 4.06B | 4.30B | 4.49B | 2.44B | 1.53B | 2.37B | Net Debt |
| 3.15B | 3.38B | 3.66B | -144.16M | -65.85M | 1.88B | Total Liabilities |
| 6.23B | 6.54B | 6.48B | 3.46B | 3.11B | 3.16B | Stockholders Equity |
| 7.60B | 7.57B | 4.99B | 3.62B | 3.41B | 2.08B |
| Cash Flow | Free Cash Flow | ||||
| 229.30M | 198.91M | 197.97M | 99.00M | 428.02M | 156.66M | Operating Cash Flow |
| 620.12M | 545.73M | 634.02M | 413.33M | 574.35M | 297.29M | Investing Cash Flow |
| -366.86M | -350.71M | -5.93B | -320.08M | -172.96M | -1.18B | Financing Cash Flow |
| -366.95M | 758.27M | 3.55B | 862.95M | 675.73M | 1.17B |
Coherent Corp Technical Analysis
Positive
78.82
Price Trends
65.01
Positive
77.84
Positive
83.53
Negative
Market Momentum
4.13
Negative
67.01
Neutral
91.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Positive. The current price of 78.82 is above the 20-day moving average (MA) of 67.62, above the 50-day MA of 65.01, and below the 200-day MA of 83.53, indicating a neutral trend. The MACD of 4.13 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHR.
Coherent Corp Risk Analysis
Coherent Corp disclosed 56 risk factors in its most recent earnings report. Coherent Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coherent Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.11B | 18.66 | 18.45% | ― | -12.94% | 47.70% | |
72 Outperform | $6.30B | 28.00 | 9.50% | 0.94% | -1.14% | ― | |
68 Neutral | $12.54B | ― | 1.25% | ― | 21.68% | 92.07% | |
64 Neutral | $17.93B | 40.02 | 24.10% | 0.19% | -14.45% | -64.32% | |
60 Neutral | $11.64B | 10.63 | -6.94% | 2.93% | 7.63% | -11.15% | |
60 Neutral | $5.39B | 50.59 | 4.39% | 1.26% | -3.43% | -50.48% |
* Technology Sector Average
Performance Comparison
COHR
Coherent Corp
78.82
20.69
35.59%
FLEX
Flex
41.95
12.65
43.17%
JBL
Jabil
166.53
51.78
45.12%
LFUS
Littelfuse
216.46
-40.52
-15.77%
MKSI
MKS Instruments
91.19
-36.09
-28.35%
Coherent Corp Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: 13.21%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
Coherent's earnings call highlights strong revenue growth driven by data center and communications markets, significant gross margin improvement, and strategic product innovations. However, this is tempered by challenges in industrial and consumer electronics markets, and ongoing restructuring costs. The company's strategic focus on core areas and debt reduction efforts are positive indicators for future performance.Q3-2025 Updates
Positive Updates
Record Revenue Growth
Fiscal third quarter revenue increased by approximately 4% sequentially and 24% year-over-year to a record $1.5 billion, driven by AI data center and telecom revenue growth.
Gross Margin Improvement
Non-GAAP gross margin improved to 38.5%, increasing 30 basis points sequentially and 490 basis points year-over-year.
Data Center and Communications Market Growth
Data center and communications revenue increased by 9% sequentially and 46% year-over-year, with strong performance in AI data centers and telecom.
Innovative Product Launches
Introduced three 1.6T transceiver designs and achieved a key milestone with a 400 gig per lane differential EML, supporting future 3.2T transceivers.
Strategic Portfolio Optimization
Exited non-core product lines such as silicon carbide devices and modules, focusing on core growth areas.
Debt Reduction
Paid down $136 million in debt during the quarter, reducing debt leverage to 2.1 times.
Negative Updates
Industrial Market Softness
Industrial related markets experienced a 2% sequential revenue decrease, with soft demand in broad-based industrial markets.
Consumer Electronics Weakness
Materials segment revenue decreased 3% sequentially and 1% year-over-year due to softness in the consumer electronics market.
Restructuring Costs
Incurred $74 million in restructuring costs related to portfolio optimization, including site closures and workforce reductions.
Company Guidance
During the Coherent Fiscal Year 2025 Third Quarter Earnings Webcast, the company provided guidance for the fourth quarter of fiscal 2025, expecting revenue between $1.425 billion and $1.575 billion. The non-GAAP gross margin is projected to range from 37% to 39%, with total operating expenses anticipated to be between $290 million and $310 million. The non-GAAP tax rate is expected to fall between 21% and 24%, while the non-GAAP EPS is guided to be between $0.81 and $1.01. The guidance accounts for the current tariff policy environment, which is not expected to significantly impact results. The company continues to focus on improving profitability through gross margin expansion and operational efficiency, while also strengthening and deleveraging its balance sheet.Coherent Corp Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Coherent Corp Reports Strong Q3 2025 Financial Results
Positive
May 7, 2025
Coherent Corp. reported its third-quarter fiscal 2025 results on May 7, 2025, with a revenue of $1.50 billion, marking a 24% year-over-year increase. The company experienced strong growth driven by AI-related datacenter demand and introduced new optical networking products. The GAAP gross margin increased to 35.2%, and the non-GAAP EPS improved to $0.91. Coherent also paid down $136 million in debt, focusing on cash and capital allocation for long-term growth.
Spark’s Take on COHR Stock
According to Spark, TipRanks’ AI Analyst, COHR is a Neutral.
Coherent Corp scores a 51, indicating a mixed outlook. The company shows financial resilience with stable cash flow and a manageable balance sheet, but faces profitability and valuation challenges. Technical indicators suggest bearish momentum, and while the earnings call highlighted growth in key segments like datacom and telecom, high operating expenses and industrial market challenges remain significant concerns.
To see Spark’s full report on COHR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.