Newport Is A Classic Case Of Growth At A Reasonable Price
John Leonard, CFA
John Leonard, CFA
Wed, Mar. 16, 4:54 PM
- Coherent (NASDAQ:COHR) is acquiring industrial laser peer Rofin-Sinar (NASDAQ:RSTI) for $942M, or $32.50/share, in cash. The price represents a 42% premium to Rofin's Wednesday close.
- The deal is expected to close in 6-9 months, provided shareholders and regulators approve. For reference, Coherent closed today with a $2.06B market cap.
- Coherent plans to finance the purchase via existing cash and committed debt financing from Barclays. CEO John Ambroseo: "The combination of Coherent and ROFIN represents a unique opportunity to strengthen Coherent's position in materials processing. The addition of ROFIN's complementary portfolio will build on Coherent's capabilities as a world leader in laser and photonics-based technology and solutions and create meaningful value for our stockholders." Rofin CEO Thomas Merk declares the two companies to be "highly complementary both technologically and geographically."
- The deal is expected to be accretive to EPS in its first full year after closing, and produce $30M/year in synergies within 18-24 months of closing. It could stoke M&A hopes for peers IPG Photonics (NASDAQ:IPGP), Newport (NASDAQ:NEWP), and GSI Group (NASDAQ:GSIG).
- COHR and RSTI appear to be halted. CC at 5PM ET (webcast).
- Update (5:43PM ET): After coming off a halt, Rofin-Sinar is up 44% after hours to $33.00. The price suggests some investors are betting on a higher bid.
Tue, Feb. 23, 12:46 PM
Tue, Feb. 23, 9:17 AM
Tue, Feb. 23, 7:38 AM
- MKS Instruments (NASDAQ:MKSI) agrees to acquire Newport (NASDAQ:NEWP) for $980M in cash, with the $23/share offer representing a 53% premium to yesterday's closing price.
- MKS says the combined company will have ~$1.4B in pro forma annual revenue, and should realize $35M in annualized cost synergies within 18-36 months.
- After a halt, NEWP +50.2% premarket.
Tue, Feb. 23, 7:21 AM
Fri, Jan. 29, 12:39 PM
- Coherent (COHR +20.5%) missed FQ1 sales estimates (while beating on EPS) and guided on its earnings call (transcript) for FQ2 revenue of $195M-$200M, below a $208.7M consensus.
- However, the industrial laser maker also reported FQ1 bookings totaled $273M, up 32.9% Q/Q and 68% Y/Y, and good for a 1.43 book-to-bill. Moreover, a fresh bookings record is forecast for FQ2, and orders are expected to remain strong in the second half of FY16.
- CEO John Ambroseo attributed the numbers to strong OLED manufacturing-related orders for Coherent's Linebeam systems. "The first wave of orders for large format Linebeam systems to be used in OLED production accounted for the bookings increase. The second wave has already arrived in the current quarter with an order well in excess of $150 million. There are a significant number of orders pending for the balance of the second quarter and for the remainder of fiscal 2016 ... We can tell you that deliveries begin in the June quarter and run through calendar 2017."
- The disclosure comes shortly after LG Display announced new investments to ramp OLED TV panel production, and amid reports Apple plans to use OLEDs in future iPhones (one report indicated a 2018 ETA).
- OLED materials/IP provider Universal Display (OLED +8.6%) is up strongly. Coherent peers Rofin-Sinar (RSTI +4.3%), IPG Photonics (IPGP +2.6%), and Newport (NEWP +3.5%) are also doing well. The Nasdaq is up 1.5%.
- Coherent's FQ1 results, earnings release
Nov. 4, 2015, 7:37 AM
- Newport (NASDAQ:NEWP): Q3 EPS of $0.31 beats by $0.03.
- Revenue of $147.56M (+0.9% Y/Y) misses by $0.25M.
Nov. 3, 2015, 5:30 PM
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Aug. 4, 2015, 4:25 PM
- Newport (NASDAQ:NEWP): Q2 EPS of $0.25 misses by $0.03.
- Revenue of $147.98M (-3.4% Y/Y) misses by $3.42M.
May 6, 2015, 4:27 PM
- Newport (NASDAQ:NEWP): Q1 EPS of $0.36 beats by $0.12.
- Revenue of $156.65M (+6.6% Y/Y) beats by $4.86M.
Apr. 30, 2015, 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.
Feb. 9, 2015, 4:08 PM
- Newport (NASDAQ:NEWP): Q4 EPS of $0.38 beats by $0.12.
- Revenue of $158.73M (+3.0% Y/Y) beats by $2.77M.
Feb. 8, 2015, 5:35 PM
Oct. 29, 2014, 4:38 PM
- Newport (NASDAQ:NEWP): Q3 EPS of $0.33 beats by $0.08.
- Revenue of $146.29M (+5.2% Y/Y) misses by $5.16M.
Jul. 30, 2014, 5:23 PM
- Newport (NASDAQ:NEWP): Q2 EPS of $0.34 beats by $0.04.
- Revenue of $153.2M (+14.1% Y/Y) beats by $3.13M.
Apr. 30, 2014, 4:29 PM
- Newport Corporation (NEWP): FQ2 EPS of $0.29 in-line.
- Revenue of $146.9M (+10.8% Y/Y) beats by $1.31M.
Newport Corp. manufactures and trades products and solutions for scientific research, microelectronics, security, life and health sciences, and industrial markets. It operates through the following segments: Photonics, Lasers, and Optics. The Photonics segment produces photonics instruments,... More
Industry: Scientific & Technical Instruments
Country: United States
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