IPG Photonics (IPGP) to Post Q2 Earnings: What's in the Cards?
IPG Photonics IPGP is slated to release its second-quarter 2023 results on Aug 1.
For the second quarter, IPG Photonics anticipates sales to be $325-$355 million. Earnings are projected between $1.05 per share and $1.35 per share.
For the quarter, the Zacks Consensus Estimate for earnings is pegged at $1.24 per share, unchanged over the past 30 days. The figure indicates a decline of 10.14% from the year-ago quarter.
The consensus mark for revenues stands at $343.53 million, suggesting a decrease of 8.88% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 58.76%.
IPG Photonics Corporation Price and EPS Surprise
IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote
Let’s see how things have shaped up for this announcement.
Factors to Note
IPG Photonics is expected to have benefited from strong demand for the handheld welder, LightWELD, driven by robust sales of EV applications. The company witnessed accelerating investment in EV battery capacity in North America, Europe, Japan and Korea.
Moreover, robust demand for cleaning and solar cell manufacturing solutions, due to increasing investment in renewable energy and eco-friendly solutions, is expected to have benefited top-line growth.
However, weakness in China and challenging macroeconomic conditions are expected to have hurt IPG’s top-line growth in the to-be-reported quarter.
In the first quarter of 2023, revenues from China declined 22% year over year. Our model estimates second-quarter 2023 China revenues of $105.4 million, indicating a 23.3% year-over-year decline.
Our model estimates 1.4%, 20.9%, 9.3% and 26.1% year-over-year growth in North America, Japan, Other Asia and Australia, and the Rest of World in second-quarter 2023, respectively.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
IPG Photonics has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Itron ITRI has an Earnings ESP of +7.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron shares have gained 49.6% year to date. ITRI is set to report its second-quarter 2023 results on Aug 3.
BILL Holdings BILL has an Earnings ESP of +4.35% and a Zacks Rank #2.
BILL Holdings shares have gained 10.2% year to date. The company is set to report its fourth-quarter fiscal 2023 results on Aug 17.
CACI International CACI has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.
CACI shares have gained 14.9% year to date. The company is set to report its fourth-quarter fiscal 2023 results on Aug 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Itron, Inc. (ITRI) : Free Stock Analysis Report
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IPG Photonics Corporation (IPGP) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
