IPG Photonics shares soar on 1Q profit and 2Q outlook

Shares of laser supplier IPG Photonics Corp. soared Tuesday after it reported strong first-quarter earnings on higher sales of lasers used for processing materials in microchips, medical devices and other industries.

Net income rose to $8.2 million, or 18 cents per share, from $6.6 million, or 15 cents per share, in the 2007 first quarter.

Analyst polled by Thomson Financial expected profit of 16 cents.

It also said it expects second-quarter sales of between $52 million and $56 million compared with $44 million last year.

Friedman, Billings, Ramsey analyst Ian Fleischer reiterated his "Outperform" rating on the company's strong first-quarter earnings and said he expects its fiber laser technology to continue to replace some conventional lasers.

"We expect meaningful margin expansion in the 2008 second half to result from significant operating leverage," he said.

IPG Photonics Corp. shares rose $2.99, or 17.7 percent, to $19.84 in late afternoon trading. They have traded in the past year between $13.80 and $23.94.