Coherent is expected to report fiscal fourth-quarter revenue of $1.98 billion and adjusted EPS of $1.43 on August 12, with the current stock price of $334.67 sitting below the $388.25 average analyst target.
Investors are primarily focused on demand for 800G and 1.6T optical transceivers, which are essential for scaling AI data center infrastructure.
The company recently saw a significant share rally following reports of a proposed U.S. ban on Chinese-made transceivers, potentially shifting market share to domestic leaders like Coherent. Additionally, the market is eager to assess the operational impact of new CEO Jim Anderson's strategy to divest non-core industrial assets and prioritize higher-margin networking products.