The 10-second takeaway
For the quarter ended March 31 (Q1), IPG Photonics missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew.
Gross margins contracted, operating margins contracted, net margins expanded.
IPG Photonics booked revenue of $141.9 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $150.2 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $123.2 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 $0.67. The eight earnings estimates compiled by S&P Capital IQ predicted $0.70 per share. GAAP EPS of $0.67 for Q1 were 9.8% higher than the prior-year quarter's $0.61 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 53.3%, 250 basis points worse than the prior-year quarter. Operating margin was 34.7%, 300 basis points worse than the prior-year quarter. Net margin was 24.8%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $162.1 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $653.9 million. The average EPS estimate is $3.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,463 members out of 1,494 rating the stock outperform, and 31 members rating it underperform. Among 444 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 435 give IPG Photonics a green thumbs-up, and nine 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 $72.38.
If you're interested in companies like IPG Photonics, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add IPG Photonics to My Watchlist.