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IPG Photonics (IPGP) to Post Q3 Earnings: What to Expect
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IPG Photonics (IPGP - Free Report) is slated to release third-quarter fiscal 2022 results on Nov 1.
For the third quarter, IPG Photonics anticipates sales to be $350-$380 million. Earnings are projected between $1 and $1.30 per share.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at $1.17 per share, unchanged over the past 30 days. The figure indicates a decline of 13.97% from the year-ago quarter.
The consensus mark for revenues stands at $361.29 million, which suggests a decrease of 4.71% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 15.45%.
IPG Photonics’ third-quarter results are likely to reflect the ongoing supply chain constraints induced by the trade restrictions imposed by the United States on China and economic sanctions on Russia in general, which have impacted the company’s operations in the country.
Amid rising supply chain constraints, IPG Photonics is expected to have benefited from the increase of sales outside of China, which contributed 64% to total revenues in the last reported quarter. This is expected to have helped the company achieve a better geographic balance in its business.
The global macro trends, including factory miniaturization, renewable energy and energy efficiency and EV, might have favored IPG Photonics’ third-quarter performance. The megatrends are likely to have increased sales in welding, marking, systems, cleaning, 3D printing, semiconductor and medical applications.
Automakers and suppliers have been investing heavily in e-mobility vehicles globally. Rising demand for its AMB lasers and foil-cutting applications used in EV battery manufacturing might have favored IPGP’s performance in the quarter to be reported.
IPGP is likely to have gained from the automation megatrend as manufacturers are increasing their investments in automation to address shortages of labor and wage inflation. This is expected to have raised demand for the company’s LightWELD lasers.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
IPG Photonics has an Earnings ESP of 0.00% and a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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IPG Photonics (IPGP) to Post Q3 Earnings: What to Expect
IPG Photonics (IPGP - Free Report) is slated to release third-quarter fiscal 2022 results on Nov 1.
For the third quarter, IPG Photonics anticipates sales to be $350-$380 million. Earnings are projected between $1 and $1.30 per share.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at $1.17 per share, unchanged over the past 30 days. The figure indicates a decline of 13.97% from the year-ago quarter.
The consensus mark for revenues stands at $361.29 million, which suggests a decrease of 4.71% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 15.45%.
IPG Photonics Corporation Price and EPS Surprise
IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote
Factors to Note
IPG Photonics’ third-quarter results are likely to reflect the ongoing supply chain constraints induced by the trade restrictions imposed by the United States on China and economic sanctions on Russia in general, which have impacted the company’s operations in the country.
Amid rising supply chain constraints, IPG Photonics is expected to have benefited from the increase of sales outside of China, which contributed 64% to total revenues in the last reported quarter. This is expected to have helped the company achieve a better geographic balance in its business.
The global macro trends, including factory miniaturization, renewable energy and energy efficiency and EV, might have favored IPG Photonics’ third-quarter performance. The megatrends are likely to have increased sales in welding, marking, systems, cleaning, 3D printing, semiconductor and medical applications.
Automakers and suppliers have been investing heavily in e-mobility vehicles globally. Rising demand for its AMB lasers and foil-cutting applications used in EV battery manufacturing might have favored IPGP’s performance in the quarter to be reported.
IPGP is likely to have gained from the automation megatrend as manufacturers are increasing their investments in automation to address shortages of labor and wage inflation. This is expected to have raised demand for the company’s LightWELD lasers.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
IPG Photonics has an Earnings ESP of 0.00% and a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ZI’s shares have lost 28.8% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 7.4%.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2.
TME shares have lost 44.3% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.7%.
Upstart (UPST - Free Report) has an Earnings ESP of +114.71% and a Zacks Rank #3.
UPST shares have lost 84.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.