I've gotta ask, what did the street want? Revenue beat, eps in line, growing margins and the stock gets thumped after reporting. Not looking for bashers or cheerleaders, but is there a logical fundamental reason the stock is getting pounded this morning?
One question in the earnings call caught my attention and it may have weighed on the stock price. when asked about what was going to be done with all the cash just sitting their the answer was not to use any for share buy backs or a special dividend. they said they were looking at acquisitions. They also said that they like to keep some cash on the books. Does not work in my share holder friendly mind.
It's not uncommon for a stock price to suffer in the short term after an in line EPS; especially one with a low float and heavy short interest like IPGP. This stock may be under pressure for the short term, but if it meets analyst expectations over the long term, it should do very well. The PEG ratio is under 1. If the PEG was anywhere near the S&P 500 PEG, this stock would be over $100.
I see things the same way. Maybe evn more important the PEG is considerably lower than that of IPGPs direct competitors like RSTI. It has invested a lot in R and D, has considerable cash and almost no debt. It's not a real small company either. It's just surprising to me that IPGP remains a short target.