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IPG Photonics (IPGP - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate by 18.7%.
IPG Photonics reported a GAAP loss of $1.91 per share prior to adjustments related to inventory-related charges, impairment of long-lived assets in Russia, restructuring charges primarily related to IPGP’s Russia operations, foreign exchange transaction gains and the gain on sale of assets, and discrete income tax adjustments.
Revenues of $333.5 million decreased 8.5% on a year-over-year basis but beat the consensus mark by 5.5%. Emerging growth product sales accounted for 46% of revenues.
Unfavorable forex hurt revenue growth by 7%, whereas business divestitures reduced it by roughly 2%.
IPG Photonics Corporation Price, Consensus and EPS Surprise
Materials processing (89% of total revenues) decreased 6% year over year. The downside can be attributed to lower revenues from cutting applications in China and Europe, partially offset by higher sales in welding and solar cell applications.
Revenues from other applications decreased 23% year over year due to lower revenues from advanced applications and the divestiture of the telecom transmission product lines.
Sales of high-power CW lasers were down 13% year over year due to lower demand in high-power cutting applications. Pulsed laser sales declined 9% year over year due to lower demand in cutting and marking applications.
Sales decreased 21% in Europe, 3% in North America and 15% in China on a year-over-year basis. Sales increased 2% year over year in Japan.
Total backlog was $811 million, consisting of $501 million of orders with firm shipment dates and $310 million of frame agreements. Total backlog increased 11% year over year, driven by a 28% increase in frame agreements and a 3% rise in orders with firm shipment dates. Fourth-quarter book-to-bill was slightly below 1.
IPG Photonics reported a gross margin of 40.4%.
Balance Sheet
As of Dec 31, 2022, IPG Photonics had $698.2 million in cash and cash equivalents compared with $869.3 million as of Sep 30, 2022.
Guidance
For first-quarter 2023, IPG Photonics anticipates sales to be $310-$340 million. Earnings are projected between 90 cents and $1.20 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #3 (Hold).
IPGP shares have lost 23.3% in the past year, underperforming the Zacks Computer & Technology sector’s decline of 16.4%.
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IPG Photonics (IPGP) Q4 Earnings Beat, Revenues Decrease Y/Y
IPG Photonics (IPGP - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate by 18.7%.
IPG Photonics reported a GAAP loss of $1.91 per share prior to adjustments related to inventory-related charges, impairment of long-lived assets in Russia, restructuring charges primarily related to IPGP’s Russia operations, foreign exchange transaction gains and the gain on sale of assets, and discrete income tax adjustments.
Revenues of $333.5 million decreased 8.5% on a year-over-year basis but beat the consensus mark by 5.5%. Emerging growth product sales accounted for 46% of revenues.
Unfavorable forex hurt revenue growth by 7%, whereas business divestitures reduced it by roughly 2%.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
Quarterly Details
Materials processing (89% of total revenues) decreased 6% year over year. The downside can be attributed to lower revenues from cutting applications in China and Europe, partially offset by higher sales in welding and solar cell applications.
Revenues from other applications decreased 23% year over year due to lower revenues from advanced applications and the divestiture of the telecom transmission product lines.
Sales of high-power CW lasers were down 13% year over year due to lower demand in high-power cutting applications. Pulsed laser sales declined 9% year over year due to lower demand in cutting and marking applications.
Sales decreased 21% in Europe, 3% in North America and 15% in China on a year-over-year basis. Sales increased 2% year over year in Japan.
Total backlog was $811 million, consisting of $501 million of orders with firm shipment dates and $310 million of frame agreements. Total backlog increased 11% year over year, driven by a 28% increase in frame agreements and a 3% rise in orders with firm shipment dates. Fourth-quarter book-to-bill was slightly below 1.
IPG Photonics reported a gross margin of 40.4%.
Balance Sheet
As of Dec 31, 2022, IPG Photonics had $698.2 million in cash and cash equivalents compared with $869.3 million as of Sep 30, 2022.
Guidance
For first-quarter 2023, IPG Photonics anticipates sales to be $310-$340 million. Earnings are projected between 90 cents and $1.20 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #3 (Hold).
IPGP shares have lost 23.3% in the past year, underperforming the Zacks Computer & Technology sector’s decline of 16.4%.
Autohome (ATHM - Free Report) , Baidu (BIDU - Free Report) and Fastly (FSLY - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While both Autohome and Baidu sport a Zacks Rank #1 (Strong Buy), Fastly carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Autohome shares have declined 23.6% in the past year. ATHM is set to report its fourth-quarter 2022 results on Feb 16.
Baidu shares have declined 8.6% in the past year. BIDU is set to report its fourth-quarter 2022 results on Feb 22.
Fastly shares have declined 54.1% in the past year. FSLY is set to report its fourth-quarter 2022 results on Feb 15.