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For the first quarter, IPG Photonics anticipates sales to be $310-$340 million. Earnings are projected between 90 cents and $1.20 per share.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at $1 per share. The figure indicates a decline of 23.66% from the year-ago quarter.
The consensus mark for revenues stands at $326.5 million, suggesting a decrease of 11.74% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 57.18%.
Let’s see how things have shaped up for this announcement.
IPG Photonics’ continuous focus on emerging products, disposing of non-core business and assets, and building production capabilities is expected to have benefited the company in the quarter to be reported.
Strong bookings in e-mobility and welding applications across major geographies is likely to have favored the company in the quarter to be reported.
Further, the global macro trends, including factory miniaturization, renewable energy and energy efficiency and EV, are expected to have favored IPG Photonics’ first-quarter performance. The megatrends are likely to have increased sales in e-mobility, welding, marking, systems, cleaning, 3D printing, semiconductor and medical applications.
Moreover, the company is likely to have benefiting from improving demand for solar cell manufacturing applications in the upcoming first quarter results.
Additionally, strong demand for AMB lasers and high-power pulse lasers is driving growth, particularly from electric vehicle battery manufacturers is likely to have contributed well in the to be reported quarter.
However, IPG Photonics’ first-quarter results are likely to reflect by weak China market shrank demand for high-powered CW lasers. Unfavorable forex and rising interest rates are expected to have hurt top-line growth.
Further, IPG Photonics is grappling with increasing lead time for components. Raging inflation that has resulted in escalating input costs is likely to have been a major headwind in the quarter under review.
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 -5.53% and a Zacks Rank #5 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:
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IPG Photonics (IPGP) to Post Q1 Earnings: What to Expect?
IPG Photonics (IPGP - Free Report) is slated to release its first-quarter fiscal 2023 results on May 2.
For the first quarter, IPG Photonics anticipates sales to be $310-$340 million. Earnings are projected between 90 cents and $1.20 per share.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at $1 per share. The figure indicates a decline of 23.66% from the year-ago quarter.
The consensus mark for revenues stands at $326.5 million, suggesting a decrease of 11.74% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 57.18%.
Let’s see how things have shaped up for this announcement.
IPG Photonics Corporation Price and EPS Surprise
IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote
Factors to Note
IPG Photonics’ continuous focus on emerging products, disposing of non-core business and assets, and building production capabilities is expected to have benefited the company in the quarter to be reported.
Strong bookings in e-mobility and welding applications across major geographies is likely to have favored the company in the quarter to be reported.
Further, the global macro trends, including factory miniaturization, renewable energy and energy efficiency and EV, are expected to have favored IPG Photonics’ first-quarter performance. The megatrends are likely to have increased sales in e-mobility, welding, marking, systems, cleaning, 3D printing, semiconductor and medical applications.
Moreover, the company is likely to have benefiting from improving demand for solar cell manufacturing applications in the upcoming first quarter results.
Additionally, strong demand for AMB lasers and high-power pulse lasers is driving growth, particularly from electric vehicle battery manufacturers is likely to have contributed well in the to be reported quarter.
However, IPG Photonics’ first-quarter results are likely to reflect by weak China market shrank demand for high-powered CW lasers. Unfavorable forex and rising interest rates are expected to have hurt top-line growth.
Further, IPG Photonics is grappling with increasing lead time for components. Raging inflation that has resulted in escalating input costs is likely to have been a major headwind in the quarter under review.
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 -5.53% and a Zacks Rank #5 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:
DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DigitalOcean shares have fallen 22.2% in the past year. DOCN is scheduled to release its first-quarter 2023 results on May 9.
Bill Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
Bill Holdings, Inc. shares have fallen 56.1% in the past year. Bill Holdings is set to report its third-quarter fiscal 2023 results on May 4.
Ceridian HCM has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.
Ceridian shares have gained 12.8% in the past year. CDAY is scheduled to report its first-quarter 2023 results on May 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.