COHR Stock Dips Overnight Despite Strong Q4: Retail Bulls Keep The Faith

• COHR was down 2.5% in overnight trading, after ending 8.2% up in the regular session.
• Coherent’s revenue surged 34% to $2.05 billion, surpassing analysts’ expectations of $1.99 billion, according to results issued after market hours.
• The retail sentiment for COHR shifted higher into the ‘extremely bullish’ zone.

Coherent Corp. reported better-than-expected quarterly results and issued a strong outlook on Wednesday, but its stock gave back its gains in overnight trading, a sign of just how high the bar has been set for AI optical networking suppliers.

COHR ended the regular session up 8.2%, having surged in sympathy with rival Lumentum Holdings after its own upbeat report earlier in the day, before slipping 2.5% overnight following Coherent's own results. Lumentum (LITE), which rose 13.6% during the session, was flat overnight. 

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Coherent and Lumentum are key suppliers of optical networking equipment to data centers and are increasingly viewed as crucial to next-generation data transmission as data centers grow larger and more sophisticated.

Coherent’s Q4 Performance

Coherent’s revenue surged 34% to $2.05 billion, surpassing analysts’ expectations of $1.99 billion. Adjusted earnings of $1.74 a share, up from $1 a year ago and above analysts’ consensus estimate of $1.62.

Guidance was also strong. The company expects adjusted earnings per share of $1.85 to $2.05 in the first quarter of fiscal 2027 on revenue of $2.3 billion at the midpoint. Analysts had forecast adjusted earnings of $1.77 a share and revenue of $2.14 billion.

“We enter fiscal 2027 with exceptional customer demand, expanding production capacity, and multiple new growth platforms beginning to ramp,” said CEO Jim Anderson in a statement, adding that data centers are increasingly shifting from copper connectors to optics.

On Wednesday morning, Lumentum reported that its fiscal fourth quarter revenue more than doubled to $1.01 billion, exceeding expectations of $987.70 million. Adjusted EPS was $3.23, above an estimated $2.97 per share. Its first-quarter forecasts were well above expectations.

Year-to-date, COHR stock has gained 93% while LITE shares are up 153%.

Retail View On COHR

COHR was among the top 10 trending stocks on Stocktwits at the time of writing, with retail sentiment extending higher in the ‘extremely bullish’ zone.

“That was a good quarter. Not as good as Lite but good. Green tomorrow if PPI is friendly,” said a trader, referring to the U.S. Producer Price Index data due Wednesday morning.

Another trader wrote: “$COHR 34% growth, 74% EPS growth, expanding margins, and absolutely enormous sequential guidance. The AI optical thesis is becoming visible directly in the P&L. This will do exactly what LITE did today after originally being flat AH last night. Easy money doesn’t come along often.”

Some also expressed skepticism around certain financial metrics. “$COHR operating cash flow is a big concern - big decrease. Remaining long from $104.32,” said a trader.

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