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IPG Photonics (IPGP - Free Report) reported first-quarter 2024 earnings of 52 cents per share, beating the Zacks Consensus Estimate by 8.33%. The company reported earnings of $1.26 per share in the year-ago quarter.
Revenues of $252 million decreased 27.4% on a year-over-year basis but beat the consensus mark by 0.67%. Unfavorable forex hurt revenue growth by 2%.
Emerging growth product sales accounted for 45% of revenues and suffered from lower demand in emobility and solar cell manufacturing applications. Lower sales in handheld welding applications and inventory adjustment by a large medical customer also hurt sales.
Quarterly Details
Materials processing (90% of total revenues) decreased 28% year over year. The downside can be attributed to lower revenues in most applications. Revenues from other applications decreased 25% year over year.
Sales decreased 16% in North America, 38% in China and 23% in Japan on a year-over-year basis. Moreover, sales decreased 21% year over year in Europe.
IPG Photonics reported a gross margin of 38.7%, down 360 basis points on a year-over-year basis.
Balance Sheet
As of Mar 31, 2024, IPG Photonics had $1.14 billion in cash & cash equivalents compared with $1.18 billion as of Dec 31, 2023.
Guidance
For second-quarter 2024, IPG Photonics anticipates sales to be $240-$270 million. Earnings are projected between 30 cents per share and 60 cents per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #5 (Strong Sell).
Shares of IPGP have declined 18.4% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 9.8%.
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IPG Photonics' (IPGP) Q1 Earnings Beat, Revenues Decrease Y/Y
IPG Photonics (IPGP - Free Report) reported first-quarter 2024 earnings of 52 cents per share, beating the Zacks Consensus Estimate by 8.33%. The company reported earnings of $1.26 per share in the year-ago quarter.
Revenues of $252 million decreased 27.4% on a year-over-year basis but beat the consensus mark by 0.67%. Unfavorable forex hurt revenue growth by 2%.
Emerging growth product sales accounted for 45% of revenues and suffered from lower demand in emobility and solar cell manufacturing applications. Lower sales in handheld welding applications and inventory adjustment by a large medical customer also hurt sales.
Quarterly Details
Materials processing (90% of total revenues) decreased 28% year over year. The downside can be attributed to lower revenues in most applications. Revenues from other applications decreased 25% year over year.
IPG Photonics Corporation Price
IPG Photonics Corporation price | IPG Photonics Corporation Quote
Sales decreased 16% in North America, 38% in China and 23% in Japan on a year-over-year basis. Moreover, sales decreased 21% year over year in Europe.
IPG Photonics reported a gross margin of 38.7%, down 360 basis points on a year-over-year basis.
Balance Sheet
As of Mar 31, 2024, IPG Photonics had $1.14 billion in cash & cash equivalents compared with $1.18 billion as of Dec 31, 2023.
Guidance
For second-quarter 2024, IPG Photonics anticipates sales to be $240-$270 million. Earnings are projected between 30 cents per share and 60 cents per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #5 (Strong Sell).
Shares of IPGP have declined 18.4% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 9.8%.
Arista Networks (ANET - Free Report) , AMETEK (AME - Free Report) , and NVIDIA (NVDA - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Arista Networks sports a Zacks Rank #1 (Strong Buy) at present, AMETEK and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 11.3% year to date. ANET is set to report its first-quarter 2024 results on May 7.
AMETEK shares have gained 7.8% year to date. AME is set to report its first-quarter 2024 results on May 2.
NVIDIA shares have gained 76.9% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.