IPG Photonics
IPGP
delivered
third-quarter 2021 earnings
of $1.40 per share, up 112% year over year, and beat the Zacks Consensus Estimate by 8.5%. Favorable forex movement benefited the bottom line by four cents.
Revenues of $379.2 million increased 19.1% on a year-over-year basis and beat the consensus mark by 2.8%.
The company noted that the results were driven by growth in demand in welding applications across most geographies. Higher revenues in cutting in North America and Europe, as well as emerging products and applications such as foil cutting, cleaning, 3D printing, drilling, medical and solar cell applications, drove the strong revenue growth in the quarter. This fully negated the weak demand in cutting applications in China.
IPG Photonics Corporation Price
IPG Photonics Corporation price
|
IPG Photonics Corporation Quote
Quarterly Details
Materials processing (91% of total revenues) revenues increased 19% year over year. The upside can be attributed to higher demand for welding, marking and additive manufacturing applications.
Revenues from other applications increased 17% year over year due to higher medical sales.
Sales of high-power CW lasers were down 4% year over year. Pulsed and medium-power lasers’ revenues increased, driven by growth in emerging products and applications.
Sales increased 50% in Europe and 55% in North America but decreased 7% in China, on a year-over-year basis.
IPG Photonics reported a gross margin of 49%, which expanded 100 basis points (bps) on a year-over-year basis.
Operating margin came in at 26.9% compared with the year-ago quarter’s figure of 13%.
Balance Sheet & Cash Flow
As of Sep 30, 2021, IPG Photonics had $1.519 billion in cash & cash equivalents and short-term investments compared with $1.497 billion as of Jun 30, 2021.
As of Sep 30, 2021, total debt (including current portion) came in at almost $35.1 million compared with $36.1 million as of Jun 30, 2021.
Guidance
For fourth-quarter 2021, IPG Photonics anticipates sales to be $330-$360 million. Earnings are projected between $1.00 per share and $1.30 per share.
Zacks Rank & Stocks to Consider
IPG Photonics currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include
Applied Materials
AMAT
,
Trimble
TRMB
and
Clearfield
CLFD
. All the three stocks carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Trimble and Clearfield are set to report their earnings results on Nov 3 and 4, respectively. Applied Material is likely to report the same on Nov 11.
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