Yahoo Finance The Coherent Corp. (NYSE:COHR) Third-Quarter Results Are Out And Analysts Have Published New Forecasts
Coherent Corp. (NYSE:COHR) just released its third-quarter report and things are looking bullish. It looks like a positive result overall, with revenues of US$1.2b beating forecasts by 3.6%. Statutory losses of US$0.29 per share were 3.6% smaller than the analysts expected, likely helped along by the higher revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Coherent
After the latest results, the 16 analysts covering Coherent are now predicting revenues of US$5.43b in 2025. If met, this would reflect a notable 18% improvement in revenue compared to the last 12 months. Coherent is also expected to turn profitable, with statutory earnings of US$1.18 per share. Before this earnings report, the analysts had been forecasting revenues of US$5.42b and earnings per share (EPS) of US$0.56 in 2025. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target was unchanged at US$65.94, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Coherent at US$77.00 per share, while the most bearish prices it at US$45.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Coherent shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Coherent's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% annually. So it's pretty clear that, while Coherent's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Coherent's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Coherent going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Coherent (1 is concerning!) that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
