IPG Photonics (Nasdaq: IPGP ) reported earnings on July 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), IPG Photonics beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margin dropped, while operating margin and net margin expanded.
IPG Photonics reported revenue of $137.9 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $135.2 million on the same basis. GAAP-reported sales were 13% higher than the prior-year quarter's $121.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.72 for Q2 were 14% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.3%, 40 basis points worse than the prior-year quarter. Operating margin was 38.5%, 80 basis points better than the prior-year quarter. Net margin was 27.4%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $146.2 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $557.6 million. The average EPS estimate is $2.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,428 members rating the stock outperform and 32 members rating it underperform. Among 409 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 401 give IPG Photonics a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IPG Photonics is outperform, with an average price target of $65.55.
Over the decades, small-cap stocks like IPG Photonics have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.