FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Cohr's Results/guidance Beat Modestly, Led By Continued Data Center Momentum

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

COHR reported Q3 FY 26 revenue of $1.81B (+21% Y/Y), beating consensus of $1.78B, while non-GAAP EPS of $1.41 (+55% Y/Y) exceeded the Street's $1.39 view. Datacenter & Communications revenue accelerated to 41% Y/Y growth, representing 75% of sales, while Industrial revenue declined 2% on a pro forma basis amid macro headwinds. We view the impressive margin expansion as validation of strong operational execution, with non-GAAP gross margin reaching 39.6% (+105 bps Y/Y) and operating margin hitting 20.3% (+163 bps Y/Y). Q4 guidance exceeded expectations with revenue midpoint of $1.98B (+29% Y/Y) and non-GAAP EPS of $1.62 (+62%) vs. consensus of $1.91B and $1.54. We believe CPO momentum continues building with an exceptionally large purchase order secured and NVDA's equity investment providing additional validation. We expect the planned doubling of InP capacity by 2027 to unlock further growth as higher-margin 1.6T transceivers and 6-inch wafers drive favorable product mix.

Related Articles

Research

Research Alert: CFRA Maintains Hold Opinion On Shares Of Adient Plc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $2 to $24, based on a FY 27 (Sep.) P/E of 8.3x, a justified discount to ADNT's historical multiples. We lower our adjusted EPS estimates to $2.15 from $2.25 for FY 26 and to $2.90 from $3.10 for FY 27. After ADNT's earnings beat and slightly increased FY 26 guidance, we lower our estimates and price target and maintain a Hold opinion on the shares. ADNT posted Q2 FY 26 adjusted EPS of $0.52 vs. $0.69 (-25%), well ahead of the $0.44 consensus. The beat was attributed to stronger-than-expected sales, as revenue rose 7% to $3.87B ($230M ahead of consensus) and adjusted EBITDA margin contracted 70 bps to 5.8% (in line). We see more attractive risk/reward potential in auto suppliers with greater exposure to higher-growth segments of the market than seating (e.g., autonomous driving software or displays) and see margin pressures persisting for the next few quarters, highlighting that its highest-margin region (Asia) is experiencing the greatest headwinds.

$ADNT
Asia

ASX Preview: Australian Shares Set to Rise as US-Iran Tensions Ease; Amcor Posts Higher Fiscal Q3 Adjusted Earnings, Net Sales

Australian shares are poised to rise on Thursday as easing geopolitical tensions and prospects of a US-Iran peace deal drove oil prices lower, boosted gold, and softened the US dollar, creating a more supportive environment for equities.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.5%, 2%, and 1.2%, respectively.In the macroeconomy, the international trade in goods report is due at 11:30 am Sydney time.In corporate news, Amcor (ASX:AMC) reported Thursday fiscal third-quarter adjusted earnings of $0.96 per share on net sales of $5.91 billion, compared with adjusted earnings of $0.90 on net sales of $3.33 billion a year earlier.Orica (ASX:ORI) reported Thursday fiscal first-half adjusted earnings of AU$0.60 per share on revenue of AU$3.88 billion, compared with adjusted earnings of AU$0.533 on revenue of AU$3.94 billion a year earlier.Australia's benchmark index rose 1.3% or 113.1 points to close at 8,793.60 on Wednesday.

$^AXJO
Asia

Correction: Orica Posts Higher Fiscal H1 Adjusted Earnings, Lower Revenue

(Corrects the year-earlier sales revenue figure in the third paragraph)Orica (ASX:ORI) reported Thursday fiscal first-half adjusted earnings of AU$0.60 per share, compared with AU$0.533 a year earlier.Analysts polled by FactSet expected earnings of AU$0.58 per share, excluding extraordinary items.Sales revenue for the six months ended March 31 was AU$3.88 billion, compared with AU$3.94 billion a year earlier. Analysts surveyed by FactSet expected AU$4.06 billion.The company said it expects fiscal 2026 underlying earnings before interest and taxes to increase across all segments and all regions versus the prior period.The board declared an interim dividend of AU$0.285 per share, up from AU$0.25 a year earlier, payable July 3 to shareholders on record as of May 22.

$ASX:ORI