IPG Photonics Corporation (NASDAQ:IPGP) Analysts Just Slashed This Year's Estimates
The latest analyst coverage could presage a bad day for IPG Photonics Corporation (NASDAQ:IPGP), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the consensus from ten analysts covering IPG Photonics is for revenues of US$1.2b in 2024, implying a definite 10% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 32% to US$3.19 in the same period. Prior to this update, the analysts had been forecasting revenues of US$1.3b and earnings per share (EPS) of US$4.98 in 2024. Indeed, we can see that the analysts are a lot more bearish about IPG Photonics' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for IPG Photonics
It'll come as no surprise then, to learn that the analysts have cut their price target 7.3% to US$115.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 1.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. It's pretty clear that IPG Photonics' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that IPG Photonics' revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of IPG Photonics.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple IPG Photonics analysts - going out to 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
