Coherent (NYSE:COHR) topped Wall Street expectations for its fourth quarter but saw shares tumble 17% in pre-market trading Thursday after issuing a mixed forecast for the current quarter.
The laser and optical components manufacturer reported earnings of $1.00 per share for the quarter ended June, exceeding analyst projections of $0.92. Revenue reached $1.53 billion, above the $1.51 billion forecast.
For the first quarter of fiscal 2025, Coherent expects earnings in the range of $0.93 to $1.13 per share and revenue between $1.46 billion and $1.60 billion, compared with Wall Street estimates of $1.03 per share on $1.55 billion in revenue.
The company also announced a definitive agreement to sell its Aerospace and Defense business to private equity firm Advent for $400 million. Proceeds will be used to reduce debt, which the company said will be immediately accretive to earnings per share. The unit, which designs and manufactures optical and laser systems for defense applications, employs about 550 people across 10 locations.
