The chart below shows how COHR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, COHR sees a +0.18% change in stock price 10 days leading up to the earnings, and a +2.03% change 10 days following the report. On the earnings day itself, the stock moves by +1.21%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Revenue Growth: Revenue increased by approximately 6% sequentially and 27% year-over-year to a record $1.43 billion.
Gross Margin Improvement: Non-GAAP gross margin improved to 38.2%, marking a 146 basis point increase sequentially and a 363 basis point increase year-over-year.
EPS Growth Surge: Non-GAAP EPS grew over 40% sequentially and more than tripled year-over-year, reaching $0.95.
Networking Revenue Surge: Networking revenue increased 7% sequentially and 56% year-over-year, driven by strong AI data center demand.
Debt Reduction Impact: $132 million in debt was paid down during the quarter, strengthening the balance sheet.
Negative
Earnings Performance Shortfall: Coherent, Inc. reported an EPS of $0.95, missing expectations of $0.69, indicating a significant shortfall in earnings performance.
Material Segment Revenue Decline: The material segment revenue decreased by 4% year-over-year, primarily due to weak automotive market demand, reflecting challenges in this key area.
Operating Expenses Increase: Non-GAAP operating expenses increased to $283 million, up from $278 million in the prior quarter and $239 million year-over-year, indicating rising costs that could pressure margins.
Q3 Revenue Projections: The guidance for Q3 revenue is projected between $1.39 billion and $1.48 billion, which suggests a potential decline from the record $1.43 billion reported in Q2.
Gross Margin Forecast Decline: The expected non-GAAP gross margin for Q3 is forecasted to be between 37% and 39%, down from the 38.2% achieved in Q2, indicating potential margin compression.
Coherent, Inc. (NASDAQ:COHR) Q2 2025 Earnings Call Transcript
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