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.
IPG Photonics (IPGP - Free Report) reported fourth-quarter 2023 earnings of 89 cents per share, lagging the Zacks Consensus Estimate by 6.32%. The company reported a loss of $1.91 per share in the year-ago quarter.
Revenues of $299 million decreased 10.4% on a year-over-year basis but beat the consensus mark by 4.5%. Unfavorable forex hurt revenue growth by 2%.
Emerging growth product sales accounted for 46% of revenues and benefited from growth in handheld welder, medical and higher beam delivery revenues.
Quarterly Details
Materials processing (87% of total revenues) decreased 12% year over year. The downside can be attributed to lower revenues from cutting. Revenues from other applications increased 4% year over year.
Sales of high-power CW lasers were down 19% year over year due to lower demand, high customer inventories and increased competition in cutting applications in China.
IPG Photonics Corporation Price, Consensus and EPS Surprise
Pulsed laser sales declined 40% year over year due to lower demand in solar cell manufacturing and foil-cutting applications.
Sales decreased 3% in North America, 25% in China and 5% in Japan on a year-over-year basis. However, sales increased 1% year over year in Europe.
IPG Photonics reported a gross margin of 38.2% compared with 18.2% in the year-ago quarter.
Balance Sheet
As of Dec 31, 2023, IPG Photonics had $1.18 billion in cash & cash equivalents compared with $1.10 billion as of Sep 30, 2023.
Guidance
For first-quarter 2024, IPG Photonics anticipates sales to be $235-$265 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 #4 (Sell).
Shares of IPGP have declined 4.5% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 8.3%.
Image: Bigstock
IPG Photonics' (IPGP) Q4 Earnings Lag, Revenues Decrease Y/Y
IPG Photonics (IPGP - Free Report) reported fourth-quarter 2023 earnings of 89 cents per share, lagging the Zacks Consensus Estimate by 6.32%. The company reported a loss of $1.91 per share in the year-ago quarter.
Revenues of $299 million decreased 10.4% on a year-over-year basis but beat the consensus mark by 4.5%. Unfavorable forex hurt revenue growth by 2%.
Emerging growth product sales accounted for 46% of revenues and benefited from growth in handheld welder, medical and higher beam delivery revenues.
Quarterly Details
Materials processing (87% of total revenues) decreased 12% year over year. The downside can be attributed to lower revenues from cutting. Revenues from other applications increased 4% year over year.
Sales of high-power CW lasers were down 19% year over year due to lower demand, high customer inventories and increased competition in cutting applications in China.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
Pulsed laser sales declined 40% year over year due to lower demand in solar cell manufacturing and foil-cutting applications.
Sales decreased 3% in North America, 25% in China and 5% in Japan on a year-over-year basis. However, sales increased 1% year over year in Europe.
IPG Photonics reported a gross margin of 38.2% compared with 18.2% in the year-ago quarter.
Balance Sheet
As of Dec 31, 2023, IPG Photonics had $1.18 billion in cash & cash equivalents compared with $1.10 billion as of Sep 30, 2023.
Guidance
For first-quarter 2024, IPG Photonics anticipates sales to be $235-$265 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 #4 (Sell).
Shares of IPGP have declined 4.5% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 8.3%.
Shopify (SHOP - Free Report) , BlackLine (BL - Free Report) and CrowdStrike (CRWD - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 14.4% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
BlackLine shares have declined 2.6% year to date. BL is set to report its fourth-quarter 2023 results on Feb 13.
CrowdStrike shares have jumped 25.8% year to date. CRWD is set to report its fourth-quarter fiscal 2024 results on Mar 5.