IPG Photonics' (IPGP) Q3 Earnings Beat, Revenues Decrease Y/Y
IPG Photonics IPGP reported third-quarter 2023 earnings of $1.16 per share, beating the Zacks Consensus Estimate by 14.9%. The figure declined 21.1% year over year.
Revenues of $301.4 million decreased 13.6% on a year-over-year basis and lagged the consensus mark by 3.68%. Emerging growth product sales accounted for 42% of revenues.
Unfavorable forex hurt revenue growth by 2%.
IPGP shares have declined 11.6% year to date, underperforming the Zacks Computer & Technology sector’s increase of 29.8%.
Quarterly Details
Materials processing (88% of total revenues) decreased 15% year over year. The downside can be attributed to lower revenues from cutting, welding and marking applications in China.
IPG Photonics Corporation Price
IPG Photonics Corporation price | IPG Photonics Corporation Quote
Revenues from other applications decreased 1% year over year due to lower revenues from advanced and telecom applications.
Sales of high-power CW lasers were down 22% year over year due to lower demand in flat sheet cutting applications and reduced demand in welding applications due to the timing of projects.
Pulsed laser sales declined 25% year over year due to lower demand in marking and solar cell manufacturing applications.
Sales decreased 13% in North America and 28% in China on a year-over-year basis. However, sales increased 41% year over year in Japan and 3% in Europe.
IPG Photonics reported a gross margin of 44.1%, up 100 basis points on a year-over-year basis.
Balance Sheet
As of Sep 30, 2023, IPG Photonics had $1.10 billion in cash & cash equivalents compared with $1.10 billion as of Jun 30, 2023.
Guidance
For fourth-quarter 2023, IPG Photonics anticipates sales to be $270-$300 million. Earnings are projected between 80 cents per share and $1.10 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #4 (Sell).
eGain EGAN, GoDaddy GDDY and Itron ITRI are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
eGain shares have declined 33.9% year to date. EGAN is set to report its first-quarter fiscal 2024 results on Nov 2.
GoDaddy shares have declined 3.3% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Itron shares have returned 12.2% year to date. ITRI is set to report its third-quarter 2023 results on Nov 2.
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