IPGP Earnings Prediction
The chart below shows how IPGP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IPGP sees a +3.48% change in stock price 10 days leading up to the earnings, and a -0.92% change 10 days following the report. On the earnings day itself, the stock moves by -2.80%. This data can give you a slight idea of what to expect for the next quarter's release.
IPGP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
233.14M
-22.65%
-9.51%
Gross Margin
23.20%
-47.38%
-37.85%
Operating Margin
-12.00%
-165.75%
-311.64%
Net Margin
-100.19%
-648.99%
-1381.20%
EPS
-5.33
-559.48%
-1284.44%
No Data Available
IPGP Earnings Analysis
IPG Photonics Corporation Corporation (IPGP.O) Earnings Conference Call
Positive
Q4 2024 Revenue Guidance: Revenue guidance for Q4 2024 is expected to be between $210 million and $240 million, reflecting a positive outlook for the upcoming quarter.
Acquisition Revenue Boost: The acquisition of Clean LASER is expected to add approximately $30 million to revenue in the first year, enhancing the company's growth potential.
Strong Financial Position: The company ended the quarter with $1 billion in cash and no debt, indicating a strong financial position.
Adjusted Gross Margin Performance: Adjusted gross margin was reported at 36%, above the midpoint of guidance, showcasing effective cost management and operational efficiency.
Share Repurchase Success: The company has successfully executed share repurchases totaling $74 million in Q3 2024, contributing to shareholder value.
Negative
Third Quarter Revenue Decline: Revenue in the third quarter was $233 million, a decline of 23% year-over-year and down 8% sequentially when adjusted for Russian revenue, which was $7 million in the quarter.
Materials Processing Revenue Decline: Revenue from materials processing applications decreased 22% year-over-year primarily due to lower cutting sales, while revenue from other applications decreased 28% due to unevenness in medical and advanced applications sales.
Gross Margin Decline: GAAP gross margin was 23.2%, a decrease of over 20 percentage points year-over-year primarily due to excess inventory provisions, which provided a 12.8 percentage point headwind to GAAP gross margin this quarter.
Operating Loss Breakdown: GAAP operating loss was $253 million and included a $198 million loss on sale of assets related to the disposal of our Russian operations and $27 million in asset impairment charges due to recent EU trade controls, which curtailed our ability to operate in Belarus.
Net Loss and Adjusted EPS: We reported a net loss of $234 million or $5.33 per diluted share, excluding loss on sale of assets, asset impairment charges and excess inventory provisions, our adjusted EPS was $0.29 in the third quarter at the top of our guidance.
IPGP FAQs
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IPGP Earning Call Sentiment
IPG Photonics Corporation (IPGP) Q3 2024 Earnings Call Transcript
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IPGP.O
-1.68%Positive
The earnings call reveals several negative factors: a significant operating loss due to excess inventory, declining sales across major regions, and challenges like regulatory issues and competitive pressures. Despite some stabilization and strategic acquisitions, the overall sentiment is negative due to financial underperformance and uncertainties. The Q&A section did not provide significant positive insights to offset these concerns. Given the market cap of $3.8 billion, a negative stock price movement of -2% to -8% is expected over the next two weeks.