What to Expect From Coherent’s Upcoming Q1 Results?
Deutsche Bank analysts provided their outlook on Coherent Corp. (NASDAQ:COHR) ahead of the upcoming Q1 earnings announcement on Nov 9.
The analysts expect the healthy demand dynamics in data centers/telecom to lead to continued revenue growth in the company’s communications business, and believe the recent share gains in sensing to support the growth of its consumer business on the launch of new high-end smartphones.
However, the analysts view the slowing PMIs across geographies as a source of risk to legacy Coherent, as over half of its segments are currently exposed to macro dynamics.
The analysts lowered their fiscal 2023 revenue/EPS estimates from $5.6 billion/$4.50 to $5.5 billion/$4.00 and lower their price target to $45 from $58 on the more uncertain demand dynamics. The analysts believe risk/reward at current levels is relatively balanced and reiterate their Hold rating.
| Symbol | Price | %chg |
|---|---|---|
| 006405.KS | 241000 | 0 |
| 006400.KS | 429000 | 0 |
| 6861.T | 70160 | 0 |
| 009155.KS | 73900 | 0 |
Coherent Reports Q1 EPS Beat, Revenues In Line
Coherent, Inc. (NASDAQ:COHR) reported its Q1 results, with EPS coming in at $0.95, better than the Street estimate of $0.93. Revenue was $1.37 billion, in line with expectations.
Analysts at Deutsche Bank view the company's commentary on demand trends as reassuring, with management reaffirming double-digit growth in fiscal 2023.
The most incremental data point from the call, in the analysts’ view, was management's indication of incremental weaknesses impacting parts of its Industrial end-market.
Overall, the analysts view the company’s continued focus on deleveraging ($133 million in debt paydown in Q2) as of key importance, especially in a raising interest rates environment.
Coherent’s Upcoming Q2 Results Preview
Deutsche Bank analysts provided their outlook on Coherent Corp. (NASDAQ:COHR) ahead of the company’s upcoming Q2 results on Wednesday.
The analysts expect the quarterly results to be generally in line with Street estimates as the company should have continued to benefit from an eased supply chain through the quarter.
The analysts expect similar dynamics to extend into 2023, and view the company’s extensive backlog (approximately $3.1 billion exiting Q1) as providing some revenue support in the occurrence of order pushouts/cancellations, hence making Q3 guidance relatively safe.
While the analysts acknowledge increasing macro pressure across segments, most notably in Comms, they believe management's guidance for double-digit growth in the segment to have already built in some level of conservatism.
