Earnings to watch: Coherent (COHR) reports Q3 results tomorrow

What happened

Coherent, a materials and photonics company, will report earnings this Wednesday afternoon. Last quarter it reported revenues of $2.05 billion, up 33.7% year on year. For this quarter the market expects revenue to grow 46.3% year on year, improving from the 17.3% increase in the same quarter last year.

Confirmed

Global impact / market context

The expected 46.3% revenue growth would mark a sharp pickup from last year's 17.3% pace. Since Coherent has a history of exceeding Wall Street's expectations, a result close to or above that forecast could support the stock, while a shortfall could pressure it because expectations are already high.

Analyst inference

Peers in electronic components and manufacturing have already reported strong quarterly results. Plexus grew revenue 34.8% year on year, beating expectations by 4.9%, and Amphenol grew revenue 65.1%, topping estimates by 7.4%. Those results suggest demand in the segment has been solid, which is a useful comparison for Coherent's report.

Analyst inference

What to watch

1. Watch whether Coherent's reported revenue reaches the market's expected 46.3% year-on-year growth, and how that compares with last quarter's $2.05 billion in revenue, which was up 33.7%. Confirmed
2. Watch whether Coherent again beats analysts' revenue and earnings guidance, as it did last quarter, when next-quarter revenue guidance exceeded analysts' expectations and earnings-per-share guidance was beaten. Proposed
3. Watch whether Coherent's growth lands near the strong results already posted by peers Plexus and Amphenol, which would suggest broad demand across the electronic components and manufacturing segment rather than a company-specific gain. Analyst inference

Evidence

• stockstory.org