The 10-second takeaway
For the quarter ended June 30 (Q2), IPG Photonics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew.
Margins shrank across the board.
IPG Photonics reported revenue of $168.2 million. The nine analysts polled by S&P Capital IQ looked for sales of $161.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $137.9 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 $0.80. The eight earnings estimates compiled by S&P Capital IQ predicted $0.78 per share. GAAP EPS of $0.80 for Q2 were 11% higher than the prior-year quarter's $0.72 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 53.5%, 80 basis points worse than the prior-year quarter. Operating margin was 35.5%, 300 basis points worse than the prior-year quarter. Net margin was 24.8%, 260 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $172.1 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $641.7 million. The average EPS estimate is $3.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,482 members out of 1,514 rating the stock outperform, and 32 members rating it underperform. Among 479 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 471 give IPG Photonics a green thumbs-up, and eight 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 $71.00.
If you're interested in companies like IPG Photonics, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add IPG Photonics to My Watchlist.