IPG Photonics Corporation Reports Mixed Q4 Results, Wide Guidance Ranges

Image source: IPG Photonics.

Shares of IPG Photonics (NASDAQ: IPGP  ) traded modestly higher this morning, following the release of IPG's fourth-quarter results.

The maker of high-powered fiber lasers grew GAAP earnings 4% year over year, landing at $0.70 per share. Revenue jumped 14% to $166 million.

Analysts expected earnings of $0.75 per share on $163 million in sales, so IPG Photonics beat the top-end estimates while whiffing on the bottom line. The strong revenue rests on high demand for IPG's bread-and-butter cutting and welding lasers.

Earnings were limited by negative foreign exchange effects and a $6 million inventory charge. The inventory writedown was related to unsold lasers for telecom-grade communications equipment, as well as product line adjustments regarding the acquisition of Mobius Photonics in March 2013. The telecom market was characterized as very lumpy, with this quarter falling in a period of slow telecom orders.

Looking ahead, CEO Valentin Gapontsev noted that the current book-to-bill sits above 1.0, which points to strong revenue visibility. The backlog of unfilled orders currently stands at $265 million, a 31% year-over-year increase.

First-quarter sales should come in between $160 million and $175 million, yielding an earnings range from $0.69 to $0.83 per share, the company says. The current Street estimates sit near the middle of these ranges.

"Fiber laser technology continues to gain adoption over traditional laser technologies and non-laser technologies," Gapontsev said in a prepared statement. "The continued market penetration and acceptance of our existing products and new product introductions give us confidence in our opportunities to grow revenues, improve margins, and enter into new applications."

link


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2840094, ~/Articles/ArticleHandler.aspx, 11/26/2014 10:37:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement