Coherent Jumps 17%: Can the Rebound Continue for Morgan Stanley’s Optical Networking Pick?
An independent exercise, not a statement by the video creator or verification of every claim in the video.
How much cash did the quarter’s growth require?
Coherent’s cash flow statement for the first quarter of fiscal 2027 shows −92.7 million dollars of operating cash flow and 775.5 million dollars of spending on property, plant and equipment. Subtracting that spending from operating cash flow gives −868.2 million dollars. If deliveries slip, track cash tied up in inventory and receivables alongside the timing of payments for equipment.
Check for yourself
- If revenue increases next quarter while inventory and receivables also rise, how might operating cash flow change?
- Which terms could protect a supplier’s cash already committed if a customer delays delivery?
Limits of application
The calculation uses only quarterly operating cash flow and purchases of property, plant and equipment. Changes in the cash balance, other investing and financing activity, and cash receipts by contract require separate review.
- What to look for
- Compare the optical networking growth drivers at Coherent and Lumentum and see what production work turns a long-term contract into revenue.
- Why it matters
- Track contract size, deliveries, operating cash flow and capital spending separately to assess sales growth alongside funding needs.
Timeline
5 segmentsCoherent is pursuing NPO and CPO, which place optics near the chip or in the same package, and announced a long-term PhotonLink agreement and plans to expand capacity. Revenue and earnings rose in the quarter, while inventory increased, operating cash flow turned negative and capital spending grew.