We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the second quarter, the company anticipates sales in the range of $240-$270 million. Earnings per share are projected between 30 cents and 60 cents.
The Zacks Consensus Estimate for earnings is pegged at 48 cents per share, unchanged over the past 30 days. The company reported earnings of $1.31 per share in the year-ago quarter.
The consensus mark for revenues stands at $255.4 million, suggesting a decrease of 24.88% 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 surprise being 5.63%.
Let’s see how things have shaped up for this announcement.
Factors to Note
IPG Photonics is expected to have suffered from lower materials processing sales, primarily due to weakness in cutting and marking applications. The Zacks Consensus Estimate for Materials Processing revenues for the second quarter is pegged at $227 million, indicating a decline of 27.7% year over year.
Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is likely to have negatively impacted industrial demand and capital investments in the quarter under review.
However, IPGP is expected to have benefited from strong demand for the handheld welder, LightWELD. The company is focusing on key growth markets and applications, including welding, cleaning, heating and medical applications. These areas are expected to have benefited top-line growth by diversifying revenues away from more competitive applications, such as cutting and marking.
IPG is also starting to ship handheld welding devices to Miller Electric, which is expected to have boosted welder sales in the second quarter and have a more measurable impact in the second half of the year. Additionally, the order pipeline and customer interest for handheld welders remain strong.
Revenues in 3D printing applications also increased as the industry continues to use high-quality lasers for metal powder melting to create parts. IPG’s strong position in this market is expected to have bolstered revenue growth in the to-be-reported quarter.
Revenues from IPG Photonics’ emerging growth products accounted for 45% of total sales in the first quarter of 2024. These products, which improve the speed and quality of manufacturing processes while reducing energy consumption and environmental impacts, are expected to have contributed significantly to overall revenues.
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 #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
IPG Photonics (IPGP) to Post Q2 Earnings: What's in the Cards?
IPG Photonics (IPGP - Free Report) is slated to release its second-quarter 2024 results on Jul 30.
For the second quarter, the company anticipates sales in the range of $240-$270 million. Earnings per share are projected between 30 cents and 60 cents.
The Zacks Consensus Estimate for earnings is pegged at 48 cents per share, unchanged over the past 30 days. The company reported earnings of $1.31 per share in the year-ago quarter.
The consensus mark for revenues stands at $255.4 million, suggesting a decrease of 24.88% from the year-ago quarter.
IPG Photonics Corporation Price and EPS Surprise
IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote
IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 5.63%.
Let’s see how things have shaped up for this announcement.
Factors to Note
IPG Photonics is expected to have suffered from lower materials processing sales, primarily due to weakness in cutting and marking applications. The Zacks Consensus Estimate for Materials Processing revenues for the second quarter is pegged at $227 million, indicating a decline of 27.7% year over year.
Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is likely to have negatively impacted industrial demand and capital investments in the quarter under review.
However, IPGP is expected to have benefited from strong demand for the handheld welder, LightWELD. The company is focusing on key growth markets and applications, including welding, cleaning, heating and medical applications. These areas are expected to have benefited top-line growth by diversifying revenues away from more competitive applications, such as cutting and marking.
IPG is also starting to ship handheld welding devices to Miller Electric, which is expected to have boosted welder sales in the second quarter and have a more measurable impact in the second half of the year. Additionally, the order pipeline and customer interest for handheld welders remain strong.
Revenues in 3D printing applications also increased as the industry continues to use high-quality lasers for metal powder melting to create parts. IPG’s strong position in this market is expected to have bolstered revenue growth in the to-be-reported quarter.
Revenues from IPG Photonics’ emerging growth products accounted for 45% of total sales in the first quarter of 2024. These products, which improve the speed and quality of manufacturing processes while reducing energy consumption and environmental impacts, are expected to have contributed significantly to overall revenues.
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 #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 33.4% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of 2 at present.
Apple’s shares have gained 13% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2 at present.
Cognizant Technology Solutions’ shares have lost 3.1% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.