Shares of optical technology leaders Lumentum Holdings Inc. (NASDAQ:LITE) and Coherent Corp. (NYSE:COHR) experienced some action after the quarterly reports. During the August 12 episode of CNBC's Mad Money, Jim Cramer highlighted the short-term disconnect between market trading dynamics and business fundamentals in the optical hardware space. He noted: Sometimes, even the best stocks get a little bit ahead of themselves.
Today, we got a terrific quarter from Lumentum. It's a fiber optics play with big data center exposure. And in response, its chief rival, Coherent, justifiably I think, rallied 8%.
Then Coherent itself reported an even better quarter tonight, but the stock was sold off in after-hours trading, I think largely just because it came in a little hot. The actual quarter was excellent… A really terrific top and bottom-line beat, management giving strong guidance for the current quarter, but the stock had run a little bit. The optics rally was set off by Lumentum Holdings Inc. (NASDAQ:LITE), which reported FQ4 2026 net revenue of $1.01 billion, up 109% year-over-year, beating consensus estimates.
Non-GAAP diluted earnings per share reached $3.23, topping Wall Street expectations by $0.26. Lumentum issued upbeat guidance for Q1 fiscal 2027, projecting net revenue between $1.225 billion and $1.275 billion with non-GAAP EPS of $4.05 to $4.35. The company's non-GAAP operating margin is projected at 39.5% to 40.5%.
The beat-and-raise report sent Lumentum shares surging and sparked a rally across the photonics sector. Coherent Corp. (NYSE:COHR) delivered a strong FQ4 2026 report of its own. The company posted net revenue of $2.05 billion, a 34.0% year-over-year increase, surpassing consensus estimates by $70 million.
Non-GAAP EPS came in at $1.74, beating Wall Street expectations by $0.12. For Q1 fiscal 2027, Coherent provided a strong guidance, forecasting revenue between $2.2 billion and $2.4 billion along with non-GAAP EPS of $1.85 to $2.05. Non-GAAP gross margin is expected between 39.5% and 41.5%, with non-GAAP operating expenses forecasted at $400 million to $420 million and an effective non-GAAP tax rate of 18% to 20%.
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