Coherent is set to report earnings Wednesday after market hours, and Cohr stock is going into the release with momentum and a demanding comparison. The materials and photonics company, which trades on the NYSE under COHR, has already shown it can clear a high bar: last quarter it posted revenue of $1.69 billion, up 17.5% from a year earlier, and beat Wall Street’s revenue expectations.
The market now expects revenue to rise 18.7% year on year this quarter, slower than the 23.9% growth Coherent posted in the same quarter last year. That would still mark solid expansion for a company that has a history of exceeding expectations, and last quarter it also topped analysts’ revenue guidance for the next quarter as well as EPS estimates for that period.
The setup matters because the broader electronic components and manufacturing group has been rewarding companies that deliver sharp growth. TTM Technologies posted revenue growth of 30.4% and beat estimates by 6.9%, then traded up 15.1% after its results. Amphenol reported revenue up 58.4%, topped estimates by 7%, and rose 2.5% after earnings. Shares in the segment have climbed 8.7% on average over the last month, while Coherent is up 28.8% over the same stretch.
That recent rally has already pushed Coherent above the average analyst price target of $320.26, with the stock last changing hands at $326.25. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, leaving Wednesday’s report to decide whether the market’s optimism was justified or whether the stock has run ahead of the numbers.
For Coherent, the test is straightforward. It has repeatedly beaten expectations, but after a sharp run higher, investors will be looking for proof that the growth story still has room to keep pace.
