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Sep 30, 2024

Coherent Q1 2025 Earnings Report

Coherent's financial performance showed year-over-year growth, driven by AI-related Datacom transceivers and margin expansion.

Key Takeaways

Coherent Corp. reported its Q1 fiscal year 2025 results, with revenue of $1.35 billion, a 28% increase year-over-year. GAAP EPS was reported at ($0.04), improved by 94% year-over-year, and non-GAAP EPS was $0.74, a 357% increase year-over-year. The company also paid down $118 million of its outstanding debt.

Q1 revenue reached $1.35 billion, reflecting a 28% increase year-over-year.

GAAP gross margin was 34.1%, a 499 bps increase year-over-year; non-GAAP gross margin was 37.7%, a 293 bps increase year-over-year.

GAAP EPS was ($0.04), a 94% improvement year-over-year; non-GAAP EPS was $0.74, a 357% improvement year-over-year.

The company highlighted strong EPS growth, cash generation, and debt reduction during the quarter.

Total Revenue
$1.35B
Previous year: $1.05B
+28.0%
EPS
$0.74
Previous year: $0.16
+362.5%
Gross Profit
$460M
Previous year: $307M
+49.9%
Cash and Equivalents
$1.02B
Previous year: $941M
+8.3%
Free Cash Flow
$61M
Previous year: $137M
-55.3%
Total Assets
$14.7B
Previous year: $13.5B
+8.7%

Coherent

Coherent

Forward Guidance

Coherent expects revenue between $1.33 billion and $1.41 billion, a non-GAAP gross margin between 36% and 38%, non-GAAP operating expenses between $275 million and $295 million, a non-GAAP tax rate between 19% and 22%, and non-GAAP EPS between $0.61 and $0.77 for the second quarter of fiscal year 2025.

Positive Outlook

  • Revenue for Q2 fiscal 2025 is expected to be between $1.33 billion and $1.41 billion.
  • Gross margin percentage for Q2 fiscal 2025 is expected to be between 36% and 38% on a non-GAAP basis.
  • Total operating expenses for Q2 fiscal 2025 are expected to be between $275 million and $295 million on a non-GAAP basis.
  • Tax rate for Q2 fiscal 2025 is expected to be between 19% and 22% on a non-GAAP basis.
  • EPS for Q2 fiscal 2025 is expected to be between $0.61 and $0.77 on a non-GAAP basis.