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Coherent, Inc. (COHR)

  • Thu, Nov. 5, 11:02 AM
    • With expectations fairly low following the company's July FQ3 miss, Coherent (NASDAQ:COHR) has soared above $63 with the help of a 110 bps Q/Q and 410 bps Y/Y increase in adjusted gross margin to 44.6%. In addition, bookings (though still slightly below revenue of $209.6M) rose 16.3% Q/Q and 12.4% Y/Y to $205.4M.
    • The beat is overshadowing FQ1 revenue guidance (provided on the earnings call) of $192M-$198M, below a $202.4M consensus. GM is expected to drop to 42.5%-43%, thanks partly to higher neon gas prices (caused by a supply shortage).
    • The industrial laser maker notes a favorable product mix and lower warranty costs boosted its bottom line. Also lifting EPS: $50M was spent to buy back 868K shares, and GAAP operating expenses fell by $1.6M Y/Y to $55.4M.
    • Microelectronics was a strong point in FQ4, with revenue rising 20.5% Q/Q due to the shipment of a Linebeam 1500 system for OLED manufacturing. Coherent thinks OLED industry investments could lead to "substantial" FY16 orders, with deliveries running well into FY17.
    • FQ4 results, PR
    | Thu, Nov. 5, 11:02 AM | Comment!
  • Thu, May 21, 3:04 PM
    • Today's notable tech gainers include Chinese online travel firms Qunar (QUNR +5%) and eLong (LONG +6.8%), Chinese IM/entertainment/gaming platform YY (YY +4.4%), flash storage array vendor Violin Memory (VMEM +3.9%), online furniture retailer Wayfair (W +5%), and industrial laser maker Coherent (COHR +4.9%). The Nasdaq is up 0.4%.
    • Notable decliners include solar installer SPI (OTCQB:SOPW -4.8%) and unstructured data management software firm Varonis (VRNS -5.1%).
    • Qunar is making fresh highs, and eLong is up 17% over the last two days. YY is recovering some of last week's post-earnings losses. Wayfair posted a Q1 beat 9 days ago. Violin, which saw insider buying in March, posts FQ1 results on June 2. Varonis is two weeks removed from plunging due to a Q1 revenue miss and soft guidance.
    • Previously covered: Salesforce, NetApp, Youku, Stratasys, Shopify, Trina, OpenText, Cree, Wave Systems
    | Thu, May 21, 3:04 PM | Comment!
  • Thu, Apr. 30, 4:00 PM
    • Though industrial laser maker Coherent (COHR -5.7%) beat FQ2 estimates, it guided on its CC (transcript) for FQ3 revenue of $190M-$210M, mostly below a $209.6M consensus. The company also guided for FY15 (ends Sep. '15) revenue of $820M-$830M, below an $840.9M consensus.
    • Peers IPG Photonics (IPGP -4.1%), Newport (NEWP -5.2%), and Rofin-Sinar (RSTI -2.8%) have joined Coherent in underperforming amid a 1.8% drop for the Nasdaq. Laser component makers II-VI (IIVI -6.2%) and GSI Group (GSIG -4.8%) have also sold off.
    • Coherent partly blamed its guidance on a strong dollar. However, the company also noted "capex investments have been muted despite continued growth in bit and device output due, in part to yield and process enhancements" - capex budget cuts from chip giants Intel and TSMC were highlighted - and that a $10M deal for a consumer electronics packaging laser project fell through when the customer "decided to stick with their current process and reuse existing equipment."
    • FQ2 book-to-bill was still a solid 1.08, and Coheren't backlog of orders expected to ship within 12 months was up 4% Y/Y to $315.3M. Materials processing and instrumentation/OEM component orders were strong, while microelectronics (chip) industry orders were soft.
    • IPG is down 6% since posting mixed Q1 results and solid Q2 guidance on Tuesday morning. II-VII is down 5% since providing an FQ3 beat at the same time.
    | Thu, Apr. 30, 4:00 PM | 1 Comment
  • Fri, Jan. 30, 12:45 PM
    | Fri, Jan. 30, 12:45 PM | 1 Comment
  • Fri, Jan. 30, 12:39 PM
    • With shares having gone into trading near their 52-week low of $53.76, Coherent's (NASDAQ:COHR) FQ1 beat is easily overshadowing light FQ2 guidance: Revenue of $195M-$205M vs. a $209.2M consensus.
    • Also helping: The industrial laser vendor has launched a new $25M buyback (good through Jan. 2016), and stated on its CC (transcript) it expects fiscal 2H revenue to be up ~10% from 1H levels. A $25M buyback launched last July has been used up.
    • With OEM order timings and soft European sales weighing on results, FQ1 bookings fell 19% Y/Y to $162.5M, and book-to-bill was 0.81. Strong Asian life sciences demand is boosting sales of Coherent's Chameleon lasers.
    • FQ1 results, PR
    | Fri, Jan. 30, 12:39 PM | Comment!
  • Nov. 1, 2013, 9:21 AM
    • Discussing its Q3 EPS (flat Y/Y and $0.03 below consensus), IPG Photonics (IPGP) says the figure "reflects the peak of [its] current investment cycle expanding manufacturing capacity, R&D and sales and marketing."
    • Those investments are set to affect Q4 results as well: The industrial laser vendor is guiding for Q4 revenue of $155M-$170M and EPS of $0.68-$0.82 vs. a consensus of $163.6M and $0.80. Demand is expected to be "seasonally weaker in certain areas."
    • Also hurting EPS: gross margin came in at 53.9%, +40 bps Q/Q but -110 bps Y/Y. R&D spend jumped 48% Y/Y to $11.5M, sales/marketing rose 17% to $6.8M; both growth rates exceeded revenue growth of 10%.
    • Asian sales rose 40% Y/Y thanks to strong Chinese/Turkish demand, but North American and European sales fell. IPG's core materials processing business saw 19% Y/Y sales growth, down from 26% in Q2 and 29% in Q1.
    • No mention in the PR of book-to-bill; in the Q2 report, IPG announced B2B "substantially exceeded 1."
    • COHR -1% in sympathy
    • Q3 results, PR
    | Nov. 1, 2013, 9:21 AM | Comment!
  • Jan. 25, 2013, 4:23 PM
    Coherent (COHR +10.6%) continued its recent rally in the wake of its FQ1 report. Though results were mixed, the industrial/electronics laser vendor guided in prepared remarks (.pdf) for FQ2 revenue of $193M-$203M, above a $192.7M consensus. Also, FQ1 gross margin rose 100 bps Q/Q to 42.6%, and book-to-bill was 0.96, a healthy figure in light of macro (Europe) and industry-specific (science, electronics/chips) challenges. Peers rose in sympathy: IPGP +2.2%. NEWP +1.5%. RSTI +2.1%.
    | Jan. 25, 2013, 4:23 PM | Comment!
  • Oct. 31, 2012, 10:08 AM
    IPG Photonics (IPGP -6.7%) continues to slump following its Q3 report. Though results beat estimates, the industrial laser maker is guiding for Q4 revenue of $140M-$150M and EPS of $0.65-$0.75, below a consensus of $156.3M and $0.81. IPG, which is heavily exposed to Europe and China, says its Q3 book-to-bill was below 1, and that macro pressures in "a few key geographies" are hurting sales. Rival Coherent (COHR -2.2%) is also lower. IPG's CC is underway (webcast). (PR)
    | Oct. 31, 2012, 10:08 AM | Comment!
  • Oct. 22, 2012, 5:38 PM
    Coherent (COHR) +4.1% AH and P.H. Glatfelter (GLT) +4.6% on news they will be joining the S&P MidCap 600 as of Friday's close. Lawson Products (LAWS) and soon-to-be-acquired Peet's Coffee will be removed.
    | Oct. 22, 2012, 5:38 PM | Comment!
  • Aug. 25, 2011, 2:11 PM
    Coherent (COHR -2.7%) announces a new $50M stock buyback plan after the laser products company says it completed a previously announced $75M buyback. Shares were down 6% earlier today before recovering a bit.
    | Aug. 25, 2011, 2:11 PM | Comment!
Company Description
Coherent Inc is a supplier of photonics-based solutions in a range of commercial and scientific research applications. It designs, manufactures, services and markets lasers and related accessories for a diverse group of customers.