The 10-second takeaway
For the quarter ended Dec. 31 (Q4), IPG Photonics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins dropped across the board.
IPG Photonics booked revenue of $145.0 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $146.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $123.5 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 $0.67. The eight earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.67 for Q4 were 4.7% higher than the prior-year quarter's $0.64 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 51.8%, 200 basis points worse than the prior-year quarter. Operating margin was 33.7%, 240 basis points worse than the prior-year quarter. Net margin was 24.1%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.4 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $644.8 million. The average EPS estimate is $3.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,450 members out of 1,486 rating the stock outperform, and 36 members rating it underperform. Among 481 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 472 give IPG Photonics a green thumbs-up, and nine 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 $66.80.
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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 recommends IPG Photonics. The Motley Fool owns shares of 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.