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%.
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.
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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%.
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.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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