IPG Photonics Earnings: What To Look For From IPGP
Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) will be reporting results tomorrow before the bell. Here's what to look for.
Last quarter IPG Photonics reported revenues of $340 million, down 9.83% year on year, missing analyst expectations by 1.79%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
Is IPG Photonics buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting IPG Photonics's revenue to decline 10.1% year on year to $313.9 million, a further deceleration on the 7.95% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.04 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at IPG Photonics's peers in the semiconductor manufacturing segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. KLA Corporation's revenues decreased 12% year on year, beating analyst estimates by 1.95% and Lam Research reported revenue decline of 31.4% year on year, exceeding estimates by 1.94%. KLA Corporation traded flat on the results, Lam Research was down 3.5%.
Read our full analysis of KLA Corporation's results here and Lam Research's results here.
Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 9.04% over the last month. IPG Photonics is down 12.5% during the same time, and is heading into the earnings with analyst price target of $126, compared to share price of $88.15.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
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The author has no position in any of the stocks mentioned.
