The 10-second takeaway
For the quarter ended Sep. 30 (Q3), IPG Photonics beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
IPG Photonics reported revenue of $156.4 million. The 10 analysts polled by S&P Capital IQ hoped for sales of $150.8 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $129.1 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 $0.81. The nine earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.81 for Q3 were 23% higher than the prior-year quarter's $0.66 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 55.0%, 40 basis points better than the prior-year quarter. Operating margin was 39.5%, 280 basis points better than the prior-year quarter. Net margin was 27.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $148.8 million. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $562.7 million. The average EPS estimate is $2.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,441 members out of 1,472 rating the stock outperform, and 31 members rating it underperform. Among 420 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 413 give IPG Photonics a green thumbs-up, and seven 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 $68.73.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of IPG Photonics. Motley Fool newsletter services recommend IPG Photonics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy