erent (US:COHR) ZACKS·2025-09-18 16:21Core Insights - Coherent Corp. (COHR) achieved a 16.4% year-over-year growth in revenue during the June quarter, driven by its AI-related Datacom transceiver business [1][9] - The company's 800G transceiver, crucial for supporting AI workloads, was a significant growth driver, aligning with the increasing demand for high-speed data center components [1] - Coherent introduced 1.6T transceiver products, generating its first revenues in the fourth quarter of fiscal 2025, showcasing its strong R&D capabilities [2] Financial Performance - Coherent reported a non-GAAP gross margin of 38.1% in the June quarter, an increase of 290 basis points from the previous year, indicating improved profitability [3][9] - The trailing 12-month EBITDA margin for COHR was 24%, significantly higher than the industry average of 14.9% and its competitors Lumentum (1.5%) and IPG Photonics (9.6%) [7][9] - Despite lower R&D spending as a percentage of sales (10% compared to the industry average of 7.2%), Coherent's operational efficiency is highlighted by its higher margins [4][10] Market Position - Over the past six months, Coherent's stock has increased by 48.2%, outperforming the industry’s 43.7% and the S&P 500 Composite's 18.2% [11] - Coherent trades at a forward price-to-earnings ratio of 21.17X, which is lower than the industry average of 29X, indicating potential value [14] - The Zacks Consensus Estimate for COHR's earnings for fiscal 2026 and 2027 has risen by 2.7% and 6%, respectively, over the past 60 days [17]