Overview

• Coherent beat estimates with $1.53 billion in fourth-quarter revenue and $1.00 in non-GAAP EPS, marking 16% year-over-year growth.
• Fiscal first-quarter revenue guidance of $1.46 billion to $1.60 billion fell short of the $1.55 billion consensus as it excludes about $20 million of aerospace and defense sales.
• The company will sell its aerospace and defense unit to Advent for $400 million, allocating proceeds to reduce debt and support future EPS.
• Shares tumbled 19%–24% into the mid-$80s, outpacing the 8.77% move priced in options and recording the largest single-day drop since April.
• Wall Street reaction was mixed, with Bank of America downgrading to Neutral and JPMorgan reiterating Overweight as it eyes long-term datacom growth and margin expansion.