Coherent (NYSE:COHR) shares fell 15% in early Wednesday trading after the manufacturer of optical materials and semiconductors reported weaker-than-expected FQ3 results and slashed its full-year outlook.
Coherent posted EPS of $0.58 on revenue of $1.24 billion, missing the analyst estimate for earnings of $0.82 on revenue of $1.34B.
“We started the third quarter with optimism based on a strong backlog, but we experienced a sudden and unexpected deceleration in revenues in the second half of the quarter when some of our larger customers requested us to delay scheduled shipments which primarily affected our revenue in the Networking Segment as those customers began adjusting their inventory levels,” said Dr. Vincent D. Mattera, Jr., Chair and CEO.
For this quarter, the company expects EPS of $0.38 on revenue of $1.155B, well below the consensus of $0.83 on revenue of $1.34B. As a result, Coherent slashed its FY revenue outlook so it now expects $5.115B at the midpoint of the newly-provided range, down from the prior $5.425B.
The company said they have “commenced certain restructuring actions and are planning to take additional actions that will run through the end of FY25, as we work to transform the Company.”
“We expect these actions will drive greater scale and focus, resiliency, and lower operating costs. We have completed a rigorous analysis into this plan, a careful consideration of the effects on our people, and we believe that this plan will better position Coherent to achieve both short and long-term commitments,” it is said in the press release.
Coherent shares are down 9.1% year-to-date.