The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IPG Photonics beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved.
Margins dropped across the board.
IPG Photonics logged revenue of $129.1 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $127.1 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $101 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.66. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share on the same basis. GAAP EPS of $0.64 for Q3 were 14% higher than the prior-year quarter's $0.56 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 53.8%, 120 basis points worse than the prior-year quarter. Operating margin was 36.1%, 180 basis points worse than the prior-year quarter. Net margin was 25.2%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $128.1 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $479.0 million. The average EPS estimate is $2.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,307 members rating the stock outperform and 31 members rating it underperform. Among 502 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 496 give IPG Photonics a green thumbs-up, and six 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 $58.56.
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