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 +5.04% change in stock price 10 days leading up to the earnings, and a -1.01% change 10 days following the report. On the earnings day itself, the stock moves by -2.88%. 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
234.34M
-21.60%
0.51%
Gross Margin
38.55%
0.92%
66.16%
Operating Margin
5.91%
-39.69%
-149.25%
Net Margin
3.33%
-75.97%
-103.32%
EPS
0.18
-79.78%
-103.38%
No Data Available
IPGP Earnings Analysis
IPG Photonics Corp Corporation (IPGP.O) Earnings Conference Call
Positive
Strong Revenue Performance: Revenue came in at the high end of guidance at $234 million, reflecting a slight sequential increase despite challenging market conditions.
Gross Margin Improvement: Gross margin improved to 38.6%, an increase of 40 basis points year-over-year, driven by lower product costs and reduced shipping expenses.
Improved Operating Expenses: Operating expenses were better than expected, down both year-over-year and sequentially, contributing to a stronger cost structure.
Strong Cash Flow Management: Cash provided by operations was $74 million, demonstrating strong cash flow management despite a decline in revenue.
Strong Financial Position: The company ended the quarter with a robust balance sheet, holding $930 million in cash and no debt, providing significant financial flexibility.
Negative
Earnings Per Share Shortfall: IPG Photonics Corporation reported an EPS of $0.18, missing expectations of $0.23, indicating a shortfall of 21.7%.
Revenue Decline Analysis: Revenue decreased by 22% year-over-year to $234 million, reflecting a significant decline in demand across key applications such as welding and cutting.
Materials Processing Revenue Decline: Materials processing applications revenue fell by 24% year-over-year, primarily due to lower sales in welding, cutting, and marking applications, highlighting a downturn in industrial demand.
High Effective Tax Rate Impact: The effective tax rate was exceptionally high at 64%, negatively impacting net income by $3.4 million, or $0.08 per share, due to unusual tax items and lack of tax benefits from losses in certain regions.
North America Sales Decline: Sales in North America dropped 31% year-over-year, primarily due to a lack of repeat large purchases in e-mobility, indicating a significant decline in market activity.
IPGP FAQs
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IPGP Earning Call Sentiment
IPG Photonics Corporation (NASDAQ:IPGP) Q4 2024 Earnings Call Transcript
IPGP.O
-2.21%Positive
Despite a revenue and EPS miss, IPG provided optimistic guidance with growth potential in medical and micromachining sectors, along with a strategic acquisition of cleanLASER. However, uncertainties in market recovery and reduced share repurchase plans temper positive sentiments. The market cap suggests moderate sensitivity to earnings events, leading to a neutral prediction.
