Why Coherent stock soared today

stock consistent (COHR 16.21%) The optical materials and semiconductor specialist was up 16.4% as of 12:15 a.m. ET on Tuesday after reporting better-than-expected quarterly results.

Coherent’s quarter was better than feared due to improving demand.

For the second quarter of the fiscal year ended December 31, 2023, Coherent’s revenue decreased 17.4% year-over-year to $1.13 billion, with adjusted (non-GAAP) earnings of $86.4 million, or $0.36 per share compared to a year ago. (down from $0.95 per share). ). On average, analysts were modeling earnings of just $0.25 per share on revenue of $1.11 billion.

Coherent management wrote in its quarterly letter to shareholders that near-term growth and visibility continue to be negatively impacted by macroeconomic uncertainty. But at the same time, Coherent not only saw signs of demand improving during the quarter, but also expects continued sequential improvement through the end of the fiscal year.

What’s next for Coherent Investors?

For the third quarter of the current fiscal year ending March 31, 2024, Coherent expects revenue of $1.12 billion to $1.2 billion and adjusted earnings per share of $0.32 to $0.52. The midpoint of that range is technically mixed relative to expectations. Wall Street analysts had been expecting earnings as low as $0.38 per share and revenue of $1.17 billion as a cap.

Finally, Coherent revised its full fiscal year outlook to $4.7 billion from $4.55 billion ($50 million more than the low end of previous guidance) and adjusted earnings per share to $1.70 from $1.30 ($1.00 to $1.70). increased). Previously $1.50).

There is still work to be done before Coherent can officially return to sustained, profitable growth. But given this bullish performance, it wouldn’t be surprising to see the stock rally.