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IPG Photonics (IPGP) to Post Q4 Earnings: What to Expect

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IPG Photonics (IPGP - Free Report) is slated to release its fourth-quarter fiscal 2022 results on Feb 14.

For the fourth quarter, IPG Photonics anticipates sales to be $300-$330 million. Earnings are projected between 70 cents and $1 per share.

For the quarter, the Zacks Consensus Estimate for earnings is pegged at 91 cents per share, unchanged over the past 30 days. The figure indicates a decline of 24.79% from the year-ago quarter.

The consensus mark for revenues stands at $315.5 million, suggesting a decrease of 13.43% from the year-ago quarter.

IPG Photonics’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.50%.

Let’s see how things have shaped up for this announcement.

Factors to Note

IPG Photonics’ fourth-quarter results are likely to reflect a moderation of orders in Europe, as well as reduced bookings in China, due to challenging macroeconomic conditions. Unfavorable forex and rising interest rates are expected to have hurt top-line growth.

However, the global macro trends, including factory miniaturization, renewable energy and energy efficiency and EV, are expected to have favored IPG Photonics’ fourth-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 is expected to 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 the 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.

IPG Photonics has an Earnings ESP of +0.55% 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.

Other Stocks to Consider

Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

salesforce (CRM - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

salesforce shares have declined 20.2% in the past year. CRM is set to report its fourth-quarter fiscal 2023 results on Mar 1.

Cambium Networks (CMBM - Free Report) has an Earnings ESP of +2.46% and a Zacks Rank #3.

Cambium shares have declined 15.4% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.

Airbnb (ABNB - Free Report) has an Earnings ESP of +8.10% and a Zacks Rank #3.

ABNB shares have declined 33.1% in the past year. Airbnb is set to report its fourth-quarter 2022 results on Feb 14.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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