Latest news with #IPGPhotonics
Yahoo
29-06-2025
- Business
- Yahoo
The Top 5 Analyst Questions From IPG Photonics's Q1 Earnings Call
IPG Photonics' first quarter was met with a negative market reaction, reflecting concerns over declining sales and margin compression. Management pointed to stabilization in core business lines and highlighted 'early traction in key areas that are central to our strategy,' according to CEO Mark Gitin. Notable factors behind the results included continued weakness in mature cutting applications, partially offset by growth in medical and advanced applications and the contribution from the cleanLASER acquisition. Gitin acknowledged lower demand in traditional materials processing, while CFO Tim Mammen cited sequential improvement in bookings, especially in e-mobility and micromachining. Is now the time to buy IPGP? Find out in our full research report (it's free). Revenue: $227.8 million vs analyst estimates of $225.1 million (9.6% year-on-year decline, 1.2% beat) Adjusted EPS: $0.31 vs analyst estimates of $0.22 (40.9% beat) Revenue Guidance for Q2 CY2025 is $225 million at the midpoint, below analyst estimates of $239.9 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.33 EBITDA guidance for Q2 CY2025 is $23.5 million at the midpoint, below analyst estimates of $28.07 million Operating Margin: 0.8%, down from 7.6% in the same quarter last year Inventory Days Outstanding: 190, up from 180 in the previous quarter Market Capitalization: $2.88 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ruben Roy (Stifel) asked about the drivers of strong bookings and growth in China's e-mobility sector. CEO Mark Gitin cited 'adjustable mode beam lasers and integrated scanning systems' as key differentiators in that market. Jim Ricchiuti (Needham & Company) questioned the expected timing of medical and micromachining product contributions. Gitin stated that the new urology system will see limited impact later this year with greater revenue contribution in 2026. Michael Feniger (Bank of America) inquired about the tariff's effect on cost structure and competitive dynamics. CFO Tim Mammen explained that near-term gross margin impacts should decline as manufacturing shifts away from high-tariff regions. Scott Graham (Seaport Research Partners) sought clarification on manufacturing optimization and how moving production away from China will affect costs. Gitin responded that IPG's global footprint allows for flexible realignment, minimizing tariff exposure with only minor increases in certain input costs. Keith Housum (Northcoast Research) probed the sustainability and composition of the book-to-bill ratio. Mammen indicated that medical orders have longer cycles, with most other segments remaining on short delivery timelines. In the coming quarters, the StockStory team will monitor (1) the pace of tariff mitigation and supply chain reconfiguration, (2) revenue traction from new medical and micromachining products, and (3) stabilization or recovery in core cutting and welding applications. Execution on these priorities will be important in determining whether IPG can return to growth and margin expansion. IPG Photonics currently trades at $68.84, up from $63.12 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Business Insider
27-05-2025
- Business
- Business Insider
Bernstein Keeps Their Hold Rating on IPG Photonics (IPGP)
Bernstein analyst Jay Huang maintained a Hold rating on IPG Photonics (IPGP – Research Report) on May 22 and set a price target of $75.00. The company's shares closed last Friday at $64.60. Confident Investing Starts Here: Huang covers the Technology sector, focusing on stocks such as Cognex, Keyence, and IPG Photonics. According to TipRanks, Huang has an average return of 0.1% and a 45.95% success rate on recommended stocks. In addition to Bernstein, IPG Photonics also received a Hold from Needham's James Ricchiuti in a report issued on May 7. However, on the same day, Bank of America Securities reiterated a Sell rating on IPG Photonics (NASDAQ: IPGP). Based on IPG Photonics' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $227.79 million and a net profit of $3.76 million. In comparison, last year the company earned a revenue of $252.01 million and had a net profit of $24.1 million Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IPGP in relation to earlier this year. Earlier this month, Eugene Shcherbakov, a Director at IPGP sold 8,500.00 shares for a total of $558,366.40.
Yahoo
20-05-2025
- Business
- Yahoo
IPGP Q1 Earnings Call: Tariff Headwinds, Product Diversification, and Bookings Momentum
Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 9.6% year on year to $227.8 million. On the other hand, next quarter's revenue guidance of $225 million was less impressive, coming in 1.3% below analysts' estimates. Its non-GAAP profit of $0.34 per share was 56.3% above analysts' consensus estimates. Is now the time to buy IPGP? Find out in our full research report (it's free). Revenue: $227.8 million vs analyst estimates of $225.1 million (9.6% year-on-year decline, 1.2% beat) Adjusted EPS: $0.34 vs analyst estimates of $0.22 (56.3% beat) Adjusted EBITDA: $17.17 million vs analyst estimates of $23.42 million (7.5% margin, 26.7% miss) Revenue Guidance for Q2 CY2025 is $225 million at the midpoint, below analyst estimates of $227.9 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.33 EBITDA guidance for Q2 CY2025 is $23.5 million at the midpoint, below analyst estimates of $28.07 million Operating Margin: 0.8%, down from 7.6% in the same quarter last year Free Cash Flow was -$11.37 million, down from $26.54 million in the same quarter last year Inventory Days Outstanding: 190, up from 180 in the previous quarter Market Capitalization: $2.83 billion IPG Photonics' first quarter was driven by stabilization in core markets and initial success in newer applications such as medical lasers and micromachining. CEO Dr. Mark Gitin noted, 'Bookings improved sequentially and book-to-bill was the strongest we've seen in more than two years,' citing growth in e-mobility applications in China, medical customer wins, and the cleanLASER acquisition as contributors to performance. While traditional materials processing segments, like cutting, remained challenged, areas such as cleaning and additive manufacturing showed resilience. Looking ahead, management pointed to recently imposed tariffs as a key headwind, indicating that these measures are delaying approximately $15 million in shipments for the next quarter. Dr. Gitin explained that these delays are not cancellations but reflect ongoing optimization of the company's global manufacturing footprint to offset tariff exposure. CFO Tim Mammen added that the company expects to substantially reduce the margin impact of tariffs by the end of the year through supply chain adjustments and selective pricing actions. IPG Photonics' management provided detailed context on the business environment, highlighting both stabilization in legacy markets and traction in emerging growth areas. The quarter's outperformance versus Wall Street revenue expectations was underpinned by strategic wins in medical and advanced applications, while tariff-related delays and higher operating expenses weighed on forward guidance. Bookings Momentum: Sequential improvement in bookings and a book-to-bill ratio above 1 signaled strengthening demand, particularly in e-mobility in China and medical applications in the U.S. Management emphasized that these gains are beginning to offset weakness in traditional cutting markets. Medical and Micromachining Growth: The addition of a new urology customer and the launch of a new micromachining product nearly doubled revenue in those areas, with management highlighting the significant long-term growth opportunity in both markets. Tariff Impact and Supply Chain Response: Recently imposed tariffs are causing shipment delays but not cancellations. Management is leveraging its flexible global manufacturing base to shift production and minimize cost impacts, aiming to resolve most delays by the third quarter. Product and Application Diversification: The cleanLASER acquisition and partnership with AkzoNobel to apply laser technology to powder coatings are expanding IPG's addressable markets, targeting applications beyond traditional materials processing. Operating Expense Increase: Investments in R&D, compensation, and benefits drove operating expenses higher. Management views these as necessary to support strategic initiatives, with expectations that operating leverage will improve as revenue from new programs scales. Management's outlook for the next quarter remains cautious due to tariff-related disruptions, but the company is focused on mitigating these effects through supply chain adjustments and product mix expansion. Tariff Mitigation Strategy: Management is optimizing manufacturing locations and supplier sourcing to reduce tariff exposure, aiming to restore margins by the end of the year. Expansion of Growth Applications: Continued investment in medical, micromachining, and advanced applications is expected to drive future revenue diversification, with new product launches planned for later this year. Ongoing Macroeconomic Uncertainty: Management acknowledged persistent uncertainty in core industrial end markets, particularly in traditional cutting and welding, and is monitoring recovery trends and inventory normalization closely. Ruben Roy (Stifel): Asked about the strength of bookings growth by geography and application; management attributed gains to e-mobility in China, medical in the U.S., and normalization in Japan. Jim Ricchiuti (Needham & Company): Inquired about the AkzoNobel partnership and medical business timing; Dr. Gitin stated powder coating applications are in early stages, while new medical systems will meaningfully contribute in 2026. Michael Feniger (Bank of America): Sought clarity on tariff impacts and pricing strategy; management explained cost increases are temporary and mitigated by shifting production and selective pricing. Scott Graham (Seaport Research Partners): Questioned manufacturing footprint changes and competitive dynamics; management detailed moving production away from tariff-affected regions and emphasized differentiation outside China's cutting segment. Keith Housum (Northcoast Research): Asked about the book-to-bill ratio and duration of backlog; CFO Tim Mammen explained medical orders have longer lead times, while most other areas remain short-cycle. In coming quarters, the StockStory team will closely monitor (1) the company's progress in resolving tariff-related shipment delays and restoring margin levels, (2) the continued growth and customer adoption of new medical and micromachining products, and (3) evidence of stabilization or renewed growth in core cutting and welding applications. The effectiveness of supply chain adjustments and execution on strategic partnerships, such as with AkzoNobel, will also be important indicators of future performance. IPG Photonics currently trades at a forward P/E ratio of 41.2×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
08-05-2025
- Business
- Yahoo
Nova (NVMI) To Report Earnings Tomorrow: Here Is What To Expect
Semiconductor quality control company Nova (NASDAQ:NVMI) will be reporting results tomorrow before the bell. Here's what you need to know. Nova beat analysts' revenue expectations by 2.3% last quarter, reporting revenues of $194.8 million, up 45.1% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts' adjusted operating income estimates. Is Nova a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Nova's revenue to grow 48.2% year on year to $210.2 million, improving from the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.09 per share. Nova Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nova has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3% on average. Looking at Nova's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kulicke and Soffa's revenues decreased 5.9% year on year, missing analysts' expectations by 1.9%, and IPG Photonics reported a revenue decline of 9.6%, topping estimates by 1.2%. Read our full analysis of Kulicke and Soffa's results here and IPG Photonics's results here. There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 22.4% on average over the last month. Nova is up 17% during the same time and is heading into earnings with an average analyst price target of $279.59 (compared to the current share price of $195). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
Yahoo
06-05-2025
- Business
- Yahoo
IPG Photonics (NASDAQ:IPGP) Posts Better-Than-Expected Sales In Q1 But Stock Drops
Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 9.6% year on year to $227.8 million. On the other hand, next quarter's revenue guidance of $225 million was less impressive, coming in 6.2% below analysts' estimates. Its non-GAAP profit of $0.31 per share was 40.9% above analysts' consensus estimates. Is now the time to buy IPG Photonics? Find out in our full research report. IPG Photonics (IPGP) Q1 CY2025 Highlights: Revenue: $227.8 million vs analyst estimates of $225.1 million (9.6% year-on-year decline, 1.2% beat) Adjusted EPS: $0.31 vs analyst estimates of $0.22 (40.9% beat) Adjusted EBITDA: $32.68 million vs analyst estimates of $23.42 million (14.3% margin, 39.6% beat) Revenue Guidance for Q2 CY2025 is $225 million at the midpoint, below analyst estimates of $239.9 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.33 EBITDA guidance for Q2 CY2025 is $23.5 million at the midpoint, below analyst estimates of $29.81 million Operating Margin: 0.8%, down from 7.6% in the same quarter last year Free Cash Flow was -$11.37 million, down from $26.54 million in the same quarter last year Inventory Days Outstanding: 190, up from 180 in the previous quarter Market Capitalization: $2.70 billion 'IPG had a strong start to the year, delivering revenue, adjusted earnings per share and adjusted EBITDA above the midpoint of our guidance and gaining early traction in key areas that are central to our strategy, including medical, micromachining, and advanced applications,' said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics. Company Overview Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials. Sales Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, IPG Photonics's demand was weak and its revenue declined by 5.3% per year. This wasn't a great result and is a sign of poor business quality. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. IPG Photonics Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. IPG Photonics's recent performance shows its demand remained suppressed as its revenue has declined by 17.7% annually over the last two years.
