February 15, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of IPG Photonics (NASDAQ: IPGP ) have gotten crushed today, down by as much as 14% after the company reported earnings.
So what: Revenue in the fourth quarter was $145 million, which translated into earnings per share of $0.67. Both figures missed analyst forecasts, which called for sales of $146.1 million and earnings per share of $0.72. CEO Dr. Valentin Gapontsev said the company did well in North America and Asia.
Now what: Guidance was mostly in line with expectations, with first-quarter sales expected in the range of $145 million to $155 million. IPG should generate earnings per share of $0.65 to $0.75 in the current quarter. The consensus estimates are perched at $145.8 million up top and $0.72 per share down below. First-quarter results are typically down seasonally, but IPG expects to post growth this quarter. The sell-off seems extreme relative to the miss, and investors could be looking at a buying opportunity right now.
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