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IPG Photonics (IPGP - Free Report) reported first-quarter 2025 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate by 47.62% but plunged 38% year over year.
Revenues of $227.8 million declined 10% on a year-over-year basis but beat the consensus mark by 2.99%. Unfavorable forex hurt revenue growth by 2%.
The year-over-year decline was primarily due to lower Materials processing sales.
Emerging growth product sales accounted for 51% of revenues, which improved 48% sequentially.
IPG Photonics Corporation Price, Consensus and EPS Surprise
Materials processing (86% of total revenues) fell 14% year over year. The downside was mainly due to lower sales in welding and cutting applications.
Revenues from other applications increased 25% year over year, primarily due to higher revenues in medical and advanced applications.
Sales dropped 12% in North America and 28% year over year in Europe, while increasing 8% in Asia.
IPG Photonics reported a gross margin of 39.4%, up 70 basis points (bps) on a year-over-year basis. The upside was driven by lower inventory provisions and a decrease in unabsorbed expenses.
IPGP’s Balance Sheet & Cash Flow Details
As of March 31, 2025, IPG Photonics had $926.9 million in cash & cash equivalents.
In first-quarter 2025, the company generated $13 million in cash from operations and spent $25 million on capital expenditures.
Guidance
For second-quarter 2025, IPG Photonics anticipates sales to be $210-$240 million, reflecting a roughly $15 million negative impact from shipment delays due to higher tariffs.
IPG Photonics expects second-quarter 2025 adjusted gross margin between 36% and 38%, including a 150 to 200 bps negative impact from tariffs, and operating expenses of $86 to $88 million.
IPG Photonics expects a second-quarter 2025 loss between 5 cents per share and earnings of 25 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Zacks Rank & Stocks to Consider
IPG Photonics currently has a Zacks Rank #3 (Hold).
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IPG Photonics' Q1 Earnings Beat Estimates, Revenues Decline Y/Y
IPG Photonics (IPGP - Free Report) reported first-quarter 2025 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate by 47.62% but plunged 38% year over year.
Revenues of $227.8 million declined 10% on a year-over-year basis but beat the consensus mark by 2.99%. Unfavorable forex hurt revenue growth by 2%.
The year-over-year decline was primarily due to lower Materials processing sales.
Emerging growth product sales accounted for 51% of revenues, which improved 48% sequentially.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
IPGP’s Q1 Quarterly Details
Materials processing (86% of total revenues) fell 14% year over year. The downside was mainly due to lower sales in welding and cutting applications.
Revenues from other applications increased 25% year over year, primarily due to higher revenues in medical and advanced applications.
Sales dropped 12% in North America and 28% year over year in Europe, while increasing 8% in Asia.
IPG Photonics reported a gross margin of 39.4%, up 70 basis points (bps) on a year-over-year basis. The upside was driven by lower inventory provisions and a decrease in unabsorbed expenses.
IPGP’s Balance Sheet & Cash Flow Details
As of March 31, 2025, IPG Photonics had $926.9 million in cash & cash equivalents.
In first-quarter 2025, the company generated $13 million in cash from operations and spent $25 million on capital expenditures.
Guidance
For second-quarter 2025, IPG Photonics anticipates sales to be $210-$240 million, reflecting a roughly $15 million negative impact from shipment delays due to higher tariffs.
IPG Photonics expects second-quarter 2025 adjusted gross margin between 36% and 38%, including a 150 to 200 bps negative impact from tariffs, and operating expenses of $86 to $88 million.
IPG Photonics expects a second-quarter 2025 loss between 5 cents per share and earnings of 25 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Zacks Rank & Stocks to Consider
IPG Photonics currently has a Zacks Rank #3 (Hold).
Affirm (AFRM - Free Report) , Compass (COMP - Free Report) , and StoneCo (STNE - Free Report) are some better-ranked stocks in the broader Zacks Computer & Technology sector. While Affirm and StoneCo sport a Zacks Rank #1 (Strong Buy) each, Compass carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Affirm, Compass and StoneCo are scheduled to report their respective first-quarter 2025 results on May 8.