Coherent, Inc. (COHR) recently hit a new 52-weke high as estimates jump higher on the company’s better than expected Q1 results from late January.
Company Description
Coherent, Inc. designs and manufactures lasers and precision optics and related accessories for commercial and scientific applications worldwide. The company was founded in 1966 and has a market cap of $776 million.
First-Quarter Results
Sales for the period were down less than 2% from last year to $123 million. But earnings came in ahead of the mark at 14 cents per share, easily trumping the Zacks Consensus Estimate calling for earnings to break even.
The company noted that it saw bookings of $158.4 million during the quarter, a 53% increase from last year and an 18% increase from the previous quarter. Coherent also has a strong cash position of $241 million.
CEO Talk
CEO John Ambroseo was encouraged by the company’s results, saying, “There were a number of positive takeaways from the first quarter, including increasing sales, a return to profitability, good cash generation and very healthy bookings.”
Estimates Jump
The better than expected quarter sent estimate higher, with the current year doubling to 82 cents, while the next year gained 26 cents to $1.16.
Valaution
After the recent string of gains, this stock does not come cheap, trading with a forward P/E multiple of 38X, a steep premium to the overall market.
The Chart
Shares of COHR jumped past a short-term level of resistance on the good quarter to hit a new 52-week high at $32. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
