Coherent shares sink 6.5% after earnings fail to impress investors
Updated
Updated · Barron's · May 6
Coherent shares sink 6.5% after earnings fail to impress investors
8 articles · Updated · Barron's · May 6
The optical networking company posted fiscal third-quarter adjusted earnings of $1.41 a share on $1.81 billion in revenue, slightly above Wall Street forecasts, with gross margin rising to 39.6%.
For the fourth quarter, Coherent forecast earnings of $1.52 to $1.72 a share, revenue of $1.91 billion to $2.05 billion and gross margin of 41%, implying further sequential improvement.
The stock had risen 86% this year and joined the S&P 500 in March, helped by AI data-centre demand and Nvidia's March investment and purchase commitments.
Coherent's stock fell on record earnings. Has Wall Street decided the AI hype has finally outpaced physical reality?
With power grids at a breaking point, is the AI hardware boom heading for an inevitable slowdown?