The 10-second takeaway
For the quarter ended Sep. 30 (Q3), IPG Photonics beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
IPG Photonics reported revenue of $156.4 million. The 10 analysts polled by S&P Capital IQ hoped for sales of $150.8 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $129.1 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 $0.81. The nine earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.81 for Q3 were 23% higher than the prior-year quarter's $0.66 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 55.0%, 40 basis points better than the prior-year quarter. Operating margin was 39.5%, 280 basis points better than the prior-year quarter. Net margin was 27.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $148.8 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $562.7 million. The average EPS estimate is $2.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,441 members out of 1,472 rating the stock outperform, and 31 members rating it underperform. Among 420 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 413 give IPG Photonics a green thumbs-up, and seven 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 $68.73.
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