Coherent forecasts upbeat first quarter on robust AI demand

Aug 12 (Reuters) - Coherent beat ‌estimates for ​fourth-quarter ​earnings on Wednesday and forecast first-quarter revenue and profit above analysts' expectations, betting on strong ‌demand for its data center and communications products.

Shares of ⁠the company, however, slipped 4% in extended trading. They have risen ‌nearly 93% so far ‌this year.

Here are more details:

• Coherent, which makes optical transceivers and other photonics products that help manage traffic ​inside data centers, has benefited from growing investment in AI infrastructure.

• Data center and communications, Coherent's largest segment, ⁠reported revenue of $1.62 billion in the fourth quarter ended June 30, up from $1.02 ​billion a year earlier.

• However, revenue at its industrial business segment declined 16% in the ​quarter. The company also reported sharply ‌lower full-year operating cash flow.

• Meanwhile, overall quarterly revenue of $2.05 billion surpassed analysts' average ⁠estimate of $1.99 billion, according to data compiled by LSEG.

• Adjusted profit per share came in at $1.74, beating estimates of $1.61.

• "We enter fiscal ⁠2027 with exceptional customer demand, expanding production capacity, and multiple new ​growth platforms beginning to ramp," CEO Jim Anderson said.

• Saxonburg, Pennsylvania-based Coherent forecast first-quarter revenue in the range of $2.2 billion to $2.4 billion, ‌above analysts' estimate of $2.14 billion.

• The company expects first-quarter adjusted profit per share of $1.85 to $2.05, ‌higher than estimates of $1.77 per share.

• In March, Nvidia ⁠said it would invest $2 billion ‌in Coherent to ​support research and development, manufacturing capacity and operations.

(Reporting by Anzar Mehraj in Bengaluru; Editing by Diti ‌Pujara)

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