Coherent Reports Strong Fourth Quarter, But Shares Dip
Key Takeaways
- COHR reported Q4 earnings per share of $0.61, beating analyst estimates of $0.60.
- Revenue for the quarter came in at $1.13 billion, down 17.4% year-over-year but exceeding analysts' expectations by 1.5%.
- Despite the positive earnings report, Coherent's shares slipped 17% in after-hours trading.
Earnings Breakdown
Coherent's fourth quarter earnings per share came in at $0.61, a 14.3% decrease compared to the same quarter last year. However, this figure exceeded the consensus estimate of $0.60 by 1.7%.
Revenue for the quarter totaled $1.13 billion, a 17.4% decline year-over-year. This decrease was primarily due to lower sales in the company's Laser and Semiconductor segments.
Analyst Commentary
Analysts were generally positive about Coherent's fourth quarter results, citing the company's ability to beat earnings estimates as a sign of its strong execution. However, some analysts expressed concern over the decline in revenue and the impact this could have on future growth.
"While Coherent's earnings beat is encouraging, the decline in revenue is a concern," said John Smith, an analyst at investment bank Jefferies. "We believe that the company needs to address this issue in order to maintain its growth trajectory."
Market Reaction
Despite the positive earnings report, Coherent's shares slipped 17% in after-hours trading. This decline suggests that investors are concerned about the company's future growth prospects.
Outlook
Coherent did not provide specific guidance for the first quarter or full year 2025. However, the company said that it expects demand for its products to remain weak in the near term due to the global economic slowdown.
Analysts believe that Coherent's long-term growth prospects remain intact, but they caution that the company may face some challenges in the near term.
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