Coherent Corp. (NYSE:COHR) agreed to sell its Aerospace and Defense business to Advent for $400 million, using the proceeds to reduce debt and enhance Coherent’s EPS. The business designs and manufactures optical and laser systems, employs 550 people, and operates from 10 locations.

The deal is set to close in the current quarter, following Coherent’s earnings call where CEO Jim Anderson explained the decision to sell. Coherent reported earnings of $1 per share, beating analysts’ estimates, with revenue of $1.52 billion exceeding expectations and increasing from the previous year.

Coherent projects first-quarter revenue between $1.46 billion and $1.6 billion, with CEO Anderson noting that the current tariff policy remains unchanged and may present a competitive advantage following President Trump’s semiconductor tariffs announcement. Bank of America Securities downgraded COHR, but Needham, Stifel, and Rosenblatt maintained Buy ratings with varied price forecasts.

COHR stock is trading down by 23.47% to $87.25 as of Thursday, with various analysts adjusting their price targets for the company.

Read more at Yahoo Finance: Coherent Eyes Core Growth Markets Following Defense Unit Sale