IPG Photonics Earnings: Here’s Why the Stock is Falling Now

IPG Photonics Corporation (NASDAQ:IPGP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11%.

IPG Photonics Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.67 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Rose 17.39% to $145 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: IPG Photonics Corporation reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.72. It missed the average revenue estimate of $146.44 million.

Quoting Management: “IPG ended a solid year of financial and operational performance with strong results for the fourth quarter,” said Dr. Valentin Gapontsev, IPG Photonics’ Chief Executive Officer. “Revenues for the quarter increased 17% over the prior year and net income increased by 12%, driven by high-power laser sales for materials processing applications. Looking at the full year, our 19% revenue growth and 23% net income growth demonstrates the wide and growing acceptance of IPG’s technology across a variety of applications.”

Key Stats (on next page)…

Revenue decreased 7.28% from $156.38 million in the previous quarter. EPS decreased 17.28% from $0.81 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 $0.72 and has not changed. For the current year, the average estimate is a profit of $2.87, which is the same with that ninety days ago.

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