Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Fortinet, Inc. (FTNT) - free report >>
IPG Photonics Corporation (IPGP) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortinet, Inc. (FTNT) - free report >>
IPG Photonics Corporation (IPGP) - free report >>
Image: Bigstock
IPG Photonics' (IPGP) Q1 Earnings Beat, Revenues Decrease Y/Y
IPG Photonics (IPGP - Free Report) reported first-quarter 2023 earnings of $1.26 per share, beating the Zacks Consensus Estimate by 26%.
Revenues of $347.2 million decreased 6.2% on a year-over-year basis but beat the consensus mark by 6.2%. Emerging growth product sales accounted for 45% of revenues.
Unfavorable forex hurt revenue growth by 4% whereas business divestitures reduced it by roughly 1%.
Quarterly Details
Materials processing (90% of total revenues) decreased 8% year over year. The downside can be attributed to lower revenues from cutting and marking applications.
Revenues from other applications increased 10% year over year due to higher revenues from advanced applications and medical.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
Sales of high-power CW lasers were down 8% year over year due to lower demand in high-power cutting applications. Pulsed laser sales declined 16% year over year due to lower demand in cutting and marking applications.
Sales decreased 7% in Europe, 1% in North America and 22% in China, on a year-over-year basis. Sales jumped 68% year over year in Japan.
IPG Photonics reported a gross margin of 42.3%, down 410 basis points on a year-over-year basis.
Balance Sheet
As of Mar 31, 2023, IPG Photonics had $1.07 billion in cash & cash equivalents compared with $698.2 million as of Dec 31, 2022.
Guidance
For second-quarter 2023, IPG Photonics anticipates sales to be $325-$355 million. Earnings are projected between $1.05 per share and $1.35 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #5 (Strong Sell).
IPGP shares have gained 23.2% year to date, outperforming the Zacks Computer & Technology sector’s increase of 20.3%.
BILL Holdings (BILL - Free Report) , Fortinet (FTNT - Free Report) and DigitalOcean (DOCN - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BILL Holdings shares have declined 29.7% year to date. BILL is set to report its first-quarter 2023 results on May 4.
Fortinet shares have gained 26% year to date. FTNT is set to report its first-quarter 2023 results on May 4.
DigitalOcean shares have gained 21.4% year to date. DOCN is set to report its first-quarter 2023 results on May 9.