IPG Photonics Earnings: Here’s Why Investors Like These Results

IPG Photonics Corporation (NASDAQ:IPGP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.36%.

IPG Photonics Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.11% to $0.80 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Rose 21.95% to $168.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IPG Photonics Corporation reported adjusted EPS income of $0.80 per share. By that measure, the company beat the mean analyst estimate of $0.78. It beat the average revenue estimate of $161.12 million.

Quoting Management: “Strong demand for IPG’s high-power lasers for materials processing applications, particularly in Asia and the U.S., drove a 22% year-over-year sales increase during the second quarter,” said Dr. Valentin Gapontsev, IPG Photonics’ Chief Executive Officer. “Gross margins of 53.5% were within our target range and net income increased 11%. The strong revenue growth during the quarter further demonstrates the increasing adoption rate of fiber laser technologies for various applications. Excluding foreign exchange rate gains, operating income grew by 12.6%. While this was lower than the growth in revenue, it reflects our investment in operating expenses to support IPG’s future growth.”

Key Stats (on next page)…

Revenue increased 18.58% from $141.85 million in the previous quarter. EPS increased 19.4% from $0.67 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.86 and has not changed. For the current year, the average estimate has moved down from a profit of $3.15 to a profit of $3.10 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)