PITTSBURGH - Coherent Corp. (NYSE: NYSE:COHR), known for its diverse technological solutions, announced today its plans to evaluate strategic alternatives for its advanced battery technology division. This segment of the company specializes in a suite of cathode, electrolyte, and cell technologies, including a novel sulfur immobilization technology that Coherent has developed over the past ten years.
The company's innovative approach to sulfur cathodes has led to what it describes as industry-leading performance, marking a significant step in the use of sulfur in battery cathodes. Coherent's advancements in this area have garnered recognition and multiple funding awards from the U.S. Department of Energy Vehicle Technologies Office and the Intelligence Advanced Research Projects Agency. The technology is also protected by 4 issued patents and 13 pending patents.
This strategic move follows a portfolio assessment completed in August, as Coherent seeks to optimize its focus and resources. The company has invited interested investors to reach out to Tim Challingsworth, Vice President, Strategy and Corporate Development, for more information. However, Coherent has stated that it will not provide further public commentary on this matter until there is a significant development.
Coherent Corp. has a broad footprint in the technology sector, supplying materials, networking solutions, and lasers to various markets, including industrial, communications, electronics, and instrumentation. The company boasts a global presence with research, development, manufacturing, sales, service, and distribution facilities around the world.
The information regarding Coherent's strategic evaluation is based on a press release statement. As the company reviews its options, the outcome could influence its position in the burgeoning battery technology market, where innovation is a key differentiator.
In other recent news, Coherent Corp. has been making significant strides in their industry. The company recently introduced the CUT12, a 2D laser cutting head designed to enhance flat sheet metal cutting. This new product is compatible with fiber lasers ranging from 4 kW to 12 kW and is engineered to optimize the use of standard and beam shaping fiber lasers.
On the financial front, Coherent's fourth-quarter revenue saw a 9.1% year-over-year increase, reaching $1.31 billion, with adjusted earnings per share at $0.61, surpassing consensus forecasts. Analysts from different firms have shown mixed reactions, with Rosenblatt Securities and B. Riley downgrading the company's stock to Neutral, while Needham maintained a Buy rating and increased their price target to $120.
The company also announced significant leadership changes, with the appointment of Sherri Luther as CFO, the promotion of James R. Anderson to President, and the addition of Rob Beard as the new Chief Legal and Global Affairs Officer.
In a strategic move, Coherent sold its Newton Aycliffe manufacturing facility in the UK. The company's first-quarter revenue for fiscal 2025 is anticipated to range from $1.27 billion to $1.35 billion, with adjusted earnings per share projected to be between $0.53 and $0.69. These recent developments continue to shape the trajectory of Coherent Corp.
InvestingPro Insights
As Coherent Corp. (NYSE: COHR) explores strategic alternatives for its advanced battery technology division, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Coherent's market capitalization stands at $14.8 billion USD, reflecting its significant presence in the technology sector. The company's revenue for the last twelve months as of Q4 2024 was $4.71 billion USD, although it experienced a revenue decline of 8.77% during this period. This context is crucial as the company evaluates its battery technology division, potentially to streamline operations and focus on more profitable segments.
InvestingPro Tips highlight that Coherent's stock price movements have been quite volatile, which aligns with the company's current strategic review process. Interestingly, despite not being profitable over the last twelve months, analysts predict that the company will be profitable this year. This optimism could be related to Coherent's efforts to optimize its portfolio, including the potential divestment or restructuring of its battery technology division.
The company has shown strong returns over various timeframes, with InvestingPro reporting a remarkable 228.78% price total return over the past year. This performance suggests that investors have been responding positively to Coherent's strategic decisions and market positioning.
It's worth noting that Coherent does not pay a dividend to shareholders, which is common for technology companies reinvesting in growth and innovation. This policy aligns with the company's focus on developing cutting-edge technologies like its sulfur immobilization technology for batteries.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 13 more InvestingPro Tips available for Coherent Corp., providing a deeper understanding of the company's financial health and market position as it navigates this strategic evaluation.
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