Coherent Corp (NYSE:COHR), a global leader in materials, networking, and lasers, stock rose 3.77% (As on August 16, 11:24:41 AM UTC-4, Source: Google Finance) after the company posted better than expected results for fourth quarter of FY 24. On a non-GAAP basis, gross margin was 36.0%. Fourth quarter fiscal 2024 revenue increased by 9% on a sequential basis primarily driven by strong sequential growth in 800G AI-related Datacom transceiver revenue. During the quarter, Coherent achieved the milestone of having shipped over 300 million Datacom transceivers from its Ipoh, Malaysia, facility since its inception. Coherent received its first volume order for its new Linebeam annealing systems for Gen 8 fabs driven by initial adoption of OLED for tablet and laptop computers.

Moreover, in datacom, Q4 revenue grew 16% sequentially and 58% year over year due primarily to AI and data center demand. The company has also delivered initial samples of the 1.6T datacom transceivers, which we expect to begin ramping in calendar 2025. Growth in datacom was partially offset by a 6% sequential and 38% year-over-year decline in telecom revenue due to end market weakness. The company expects the telecom end market to remain weak in the near term, the company also expects to ramp the new 100-gig ZR and 400-gig ZR+ Coherent transceivers over the course of the fiscal year. The display capital equipment vertical saw a growing demand in Q4 for excimer laser annealing and related services driven by expanded OLED adoption in the smartphones and the inception of OLED adoption into laptop and tablet computers, with the latter essentially doubling long-term demand for OLED screen area production.

COHR in the fourth quarter of FY 24 has reported the adjusted earnings per share of 61 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 9.1 percent to $1.31 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $1.28 billion.

For the current quarter ending in September, Coherent expects its per-share earnings to range from 53 cents to 69 cents. The company said it expects revenue in the range of $1.27 billion to $1.35 billion for the fiscal first quarter. Gross margin percentage for the first quarter of fiscal 2025 is expected to be between 36% and 38% on a non-GAAP basis. Total operating expenses for the first quarter of fiscal 2025 are expected to be between $260 million and $280 million on a non-GAAP basis.