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IPG Photonics (IPGP - Free Report) reported first-quarter 2023 earnings of $1.26 per share, beating the Zacks Consensus Estimate by 26%.
Revenues of $347.2 million decreased 6.2% on a year-over-year basis but beat the consensus mark by 6.2%. Emerging growth product sales accounted for 45% of revenues.
Unfavorable forex hurt revenue growth by 4% whereas business divestitures reduced it by roughly 1%.
Quarterly Details
Materials processing (90% of total revenues) decreased 8% year over year. The downside can be attributed to lower revenues from cutting and marking applications.
Revenues from other applications increased 10% year over year due to higher revenues from advanced applications and medical.
IPG Photonics Corporation Price, Consensus and EPS Surprise
Sales of high-power CW lasers were down 8% year over year due to lower demand in high-power cutting applications. Pulsed laser sales declined 16% year over year due to lower demand in cutting and marking applications.
Sales decreased 7% in Europe, 1% in North America and 22% in China, on a year-over-year basis. Sales jumped 68% year over year in Japan.
IPG Photonics reported a gross margin of 42.3%, down 410 basis points on a year-over-year basis.
Balance Sheet
As of Mar 31, 2023, IPG Photonics had $1.07 billion in cash & cash equivalents compared with $698.2 million as of Dec 31, 2022.
Guidance
For second-quarter 2023, IPG Photonics anticipates sales to be $325-$355 million. Earnings are projected between $1.05 per share and $1.35 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #5 (Strong Sell).
IPGP shares have gained 23.2% year to date, outperforming the Zacks Computer & Technology sector’s increase of 20.3%.
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IPG Photonics' (IPGP) Q1 Earnings Beat, Revenues Decrease Y/Y
IPG Photonics (IPGP - Free Report) reported first-quarter 2023 earnings of $1.26 per share, beating the Zacks Consensus Estimate by 26%.
Revenues of $347.2 million decreased 6.2% on a year-over-year basis but beat the consensus mark by 6.2%. Emerging growth product sales accounted for 45% of revenues.
Unfavorable forex hurt revenue growth by 4% whereas business divestitures reduced it by roughly 1%.
Quarterly Details
Materials processing (90% of total revenues) decreased 8% year over year. The downside can be attributed to lower revenues from cutting and marking applications.
Revenues from other applications increased 10% year over year due to higher revenues from advanced applications and medical.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
Sales of high-power CW lasers were down 8% year over year due to lower demand in high-power cutting applications. Pulsed laser sales declined 16% year over year due to lower demand in cutting and marking applications.
Sales decreased 7% in Europe, 1% in North America and 22% in China, on a year-over-year basis. Sales jumped 68% year over year in Japan.
IPG Photonics reported a gross margin of 42.3%, down 410 basis points on a year-over-year basis.
Balance Sheet
As of Mar 31, 2023, IPG Photonics had $1.07 billion in cash & cash equivalents compared with $698.2 million as of Dec 31, 2022.
Guidance
For second-quarter 2023, IPG Photonics anticipates sales to be $325-$355 million. Earnings are projected between $1.05 per share and $1.35 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #5 (Strong Sell).
IPGP shares have gained 23.2% year to date, outperforming the Zacks Computer & Technology sector’s increase of 20.3%.
BILL Holdings (BILL - Free Report) , Fortinet (FTNT - Free Report) and DigitalOcean (DOCN - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BILL Holdings shares have declined 29.7% year to date. BILL is set to report its first-quarter 2023 results on May 4.
Fortinet shares have gained 26% year to date. FTNT is set to report its first-quarter 2023 results on May 4.
DigitalOcean shares have gained 21.4% year to date. DOCN is set to report its first-quarter 2023 results on May 9.