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What: Shares of fiber laser specialist IPG Photonics
So what: Driven by strong demand in China and Europe, IPG said it expects fourth-quarter profits of $0.53-$0.56 per share on roughly $100 million of sales, while analysts were expecting per-share earnings of just $0.36 on $85 million of sales. The shares are breaking all-time highs on the ultra-positive forecast, with today's volume at already about ninetimes IPG's average.
Now what: Don't let today's pop keep you from digging into IPG. Thanks to surging demand from semiconductor and telecom companies, IPG CFO Tim Mammen noted that the fiber laser market is growing at about 20% a year, more than double the growth rate of the wider laser market. With industry-topping operating margins, IPG seems like a particularly sharp play on that rather tasty tailwind.
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