Coherent Beats on Both Top and Bottom Lines

Coherent (Nasdaq: COHR  ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Coherent beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped slightly.

Margins dropped across the board.

Revenue details
Coherent reported revenue of $196.4 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $194.1 million on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $210.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.83. The seven earnings estimates compiled by S&P Capital IQ forecast $0.74 per share. GAAP EPS of $0.72 for Q3 were 2.7% lower than the prior-year quarter's $0.74 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.9%, 190 basis points worse than the prior-year quarter. Operating margin was 13.4%, 20 basis points worse than the prior-year quarter. Net margin was 8.8%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $209.4 million. On the bottom line, the average EPS estimate is $0.90.

Next year's average estimate for revenue is $787.4 million. The average EPS estimate is $3.16.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 77 members out of 90 rating the stock outperform, and 13 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Coherent a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coherent is buy, with an average price target of $67.40.

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