Why Coherent (COHR) Shares Are Plunging Today - Coherent (NYSE:COHR)

Coherent Corp COHR shares are plunging Wednesday premarket as its third-quarter results missed Street expectations. The company also slashed its FY23 revenue outlook.
COHR reported third-quarter FY23 revenue growth of 49.8% year-over-year to $1.24 billion, with +6% on an organic basis, missing the consensus of $1.34 billion.
Adjusted EPS was $0.58, down from $0.95 in 3Q22, missing the consensus of $0.82.
Adjusted gross margin was 37.3%, down from 40.6% in 3Q22. Adjusted operating margin declined to 17.5% from 20.8% a year ago.
Adjusted EBITDA margin contracted to 23.3% in the quarter from 27.4% in 3Q22.
The company's Backlog grew 23% Y/Y to $2.6 billion.
COHR's net cash provided by operating activities year-to-date totaled $452.5 million, compared to $276 million a year ago.
"We 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," commented Dr. Vincent D. Mattera, Jr., Chair and CEO.
4Q23 Outlook: Coherent expects revenue of $1.125 billion-$1.175 billion, versus consensus of $1.34 billion, and adjusted EPS of $0.33-$0.43, versus $0.87 consensus.
FY23 Outlook: The company expects revenue of $5.08 billion-$5.15 billion (prior view $5.35 billion-$5.50 billion) versus $5.4 billion.
Price Action: COHR shares are trading lower by 18.3% at $26.05 premarket on Wednesday.
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Why Coherent Shares Are Plunging Today