Stock Alert: Lumentum Holdings Slip 10%

(RTTNews) - Shares of Lumentum Holdings Inc. (LITE) are currently slipping nearly 10% after the optical products company agreed to buy laser maker Coherent Inc. (COHR) in a cash-and-stock deal worth $5.7 billion.

LITE is currently trading at $95.92, down $10.40 or 9.78%, on the Nasdaq.

Under terms of the agreement, Coherent shareholders will receive $100 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share held. The transaction represents a premium of 49% to Coherent's closing price on Friday.

Coherent stockholders are expected to own around 27% of the combined company. The deal is expected to close in the second half of calendar year 2021.

Looking forward to the second quarter, Lumentum expects revenues of about $478.8 million and adjusted earnings of about $1.91 to $1.99 per share. Analysts currently estimate earnings of $1.82 and revenues of $479.63 million.