Why Coherent Stock Lit Up 12% on Wednesday
Shares of laser systems and components maker Coherent (NASDAQ: COHR) are glowing bright green Wednesday morning, up 11.8% as of 10:20 a.m. ET after just barely missing analyst sales targets for fiscal Q1 2023 -- but crushing on earnings.
Coherent, which is the name of the new company that emerged from the merger of II-VI with Coherent this past summer, was only expected to earn $0.83 per share (pro forma) in its first fiscal quarter, but ended up earning $1.04 per share instead. Sales for the quarter -- $1.34 billion -- fell just short of analysts' target of $1.35 billion, according to a report from The Fly.
And that's OK. Even if Coherent missed revenue, it still posted 69% year-over-year revenue growth. And yes, this was largely due to merging two companies' revenue streams into one, but Coherent pointed out that it also grew revenue organically by 20% (i.e., the average growth of each of the companies that merged to form the new Coherent was 20%).
Source Fool.com
