Latest news with #IPGP
Business Insider
27-05-2025
- Business
- Business Insider
Bernstein Keeps Their Hold Rating on IPG Photonics (IPGP)
Bernstein analyst Jay Huang maintained a Hold rating on IPG Photonics (IPGP – Research Report) on May 22 and set a price target of $75.00. The company's shares closed last Friday at $64.60. Confident Investing Starts Here: Huang covers the Technology sector, focusing on stocks such as Cognex, Keyence, and IPG Photonics. According to TipRanks, Huang has an average return of 0.1% and a 45.95% success rate on recommended stocks. In addition to Bernstein, IPG Photonics also received a Hold from Needham's James Ricchiuti in a report issued on May 7. However, on the same day, Bank of America Securities reiterated a Sell rating on IPG Photonics (NASDAQ: IPGP). Based on IPG Photonics' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $227.79 million and a net profit of $3.76 million. In comparison, last year the company earned a revenue of $252.01 million and had a net profit of $24.1 million Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IPGP in relation to earlier this year. Earlier this month, Eugene Shcherbakov, a Director at IPGP sold 8,500.00 shares for a total of $558,366.40.
Yahoo
20-05-2025
- Business
- Yahoo
IPGP Q1 Earnings Call: Tariff Headwinds, Product Diversification, and Bookings Momentum
Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 9.6% year on year to $227.8 million. On the other hand, next quarter's revenue guidance of $225 million was less impressive, coming in 1.3% below analysts' estimates. Its non-GAAP profit of $0.34 per share was 56.3% above analysts' consensus estimates. Is now the time to buy IPGP? Find out in our full research report (it's free). Revenue: $227.8 million vs analyst estimates of $225.1 million (9.6% year-on-year decline, 1.2% beat) Adjusted EPS: $0.34 vs analyst estimates of $0.22 (56.3% beat) Adjusted EBITDA: $17.17 million vs analyst estimates of $23.42 million (7.5% margin, 26.7% miss) Revenue Guidance for Q2 CY2025 is $225 million at the midpoint, below analyst estimates of $227.9 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.33 EBITDA guidance for Q2 CY2025 is $23.5 million at the midpoint, below analyst estimates of $28.07 million Operating Margin: 0.8%, down from 7.6% in the same quarter last year Free Cash Flow was -$11.37 million, down from $26.54 million in the same quarter last year Inventory Days Outstanding: 190, up from 180 in the previous quarter Market Capitalization: $2.83 billion IPG Photonics' first quarter was driven by stabilization in core markets and initial success in newer applications such as medical lasers and micromachining. CEO Dr. Mark Gitin noted, 'Bookings improved sequentially and book-to-bill was the strongest we've seen in more than two years,' citing growth in e-mobility applications in China, medical customer wins, and the cleanLASER acquisition as contributors to performance. While traditional materials processing segments, like cutting, remained challenged, areas such as cleaning and additive manufacturing showed resilience. Looking ahead, management pointed to recently imposed tariffs as a key headwind, indicating that these measures are delaying approximately $15 million in shipments for the next quarter. Dr. Gitin explained that these delays are not cancellations but reflect ongoing optimization of the company's global manufacturing footprint to offset tariff exposure. CFO Tim Mammen added that the company expects to substantially reduce the margin impact of tariffs by the end of the year through supply chain adjustments and selective pricing actions. IPG Photonics' management provided detailed context on the business environment, highlighting both stabilization in legacy markets and traction in emerging growth areas. The quarter's outperformance versus Wall Street revenue expectations was underpinned by strategic wins in medical and advanced applications, while tariff-related delays and higher operating expenses weighed on forward guidance. Bookings Momentum: Sequential improvement in bookings and a book-to-bill ratio above 1 signaled strengthening demand, particularly in e-mobility in China and medical applications in the U.S. Management emphasized that these gains are beginning to offset weakness in traditional cutting markets. Medical and Micromachining Growth: The addition of a new urology customer and the launch of a new micromachining product nearly doubled revenue in those areas, with management highlighting the significant long-term growth opportunity in both markets. Tariff Impact and Supply Chain Response: Recently imposed tariffs are causing shipment delays but not cancellations. Management is leveraging its flexible global manufacturing base to shift production and minimize cost impacts, aiming to resolve most delays by the third quarter. Product and Application Diversification: The cleanLASER acquisition and partnership with AkzoNobel to apply laser technology to powder coatings are expanding IPG's addressable markets, targeting applications beyond traditional materials processing. Operating Expense Increase: Investments in R&D, compensation, and benefits drove operating expenses higher. Management views these as necessary to support strategic initiatives, with expectations that operating leverage will improve as revenue from new programs scales. Management's outlook for the next quarter remains cautious due to tariff-related disruptions, but the company is focused on mitigating these effects through supply chain adjustments and product mix expansion. Tariff Mitigation Strategy: Management is optimizing manufacturing locations and supplier sourcing to reduce tariff exposure, aiming to restore margins by the end of the year. Expansion of Growth Applications: Continued investment in medical, micromachining, and advanced applications is expected to drive future revenue diversification, with new product launches planned for later this year. Ongoing Macroeconomic Uncertainty: Management acknowledged persistent uncertainty in core industrial end markets, particularly in traditional cutting and welding, and is monitoring recovery trends and inventory normalization closely. Ruben Roy (Stifel): Asked about the strength of bookings growth by geography and application; management attributed gains to e-mobility in China, medical in the U.S., and normalization in Japan. Jim Ricchiuti (Needham & Company): Inquired about the AkzoNobel partnership and medical business timing; Dr. Gitin stated powder coating applications are in early stages, while new medical systems will meaningfully contribute in 2026. Michael Feniger (Bank of America): Sought clarity on tariff impacts and pricing strategy; management explained cost increases are temporary and mitigated by shifting production and selective pricing. Scott Graham (Seaport Research Partners): Questioned manufacturing footprint changes and competitive dynamics; management detailed moving production away from tariff-affected regions and emphasized differentiation outside China's cutting segment. Keith Housum (Northcoast Research): Asked about the book-to-bill ratio and duration of backlog; CFO Tim Mammen explained medical orders have longer lead times, while most other areas remain short-cycle. In coming quarters, the StockStory team will closely monitor (1) the company's progress in resolving tariff-related shipment delays and restoring margin levels, (2) the continued growth and customer adoption of new medical and micromachining products, and (3) evidence of stabilization or renewed growth in core cutting and welding applications. The effectiveness of supply chain adjustments and execution on strategic partnerships, such as with AkzoNobel, will also be important indicators of future performance. IPG Photonics currently trades at a forward P/E ratio of 41.2×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
02-04-2025
- Business
- Yahoo
3 Reasons to Avoid IPGP and 1 Stock to Buy Instead
Over the last six months, IPG Photonics shares have sunk to $63.58, producing a disappointing 13.1% loss - worse than the S&P 500's 1.6% drop. This may have investors wondering how to approach the situation. Is now the time to buy IPG Photonics, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Even with the cheaper entry price, we don't have much confidence in IPG Photonics. Here are three reasons why IPGP doesn't excite us and a stock we'd rather own. Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. IPG Photonics struggled to consistently generate demand over the last five years as its sales dropped at a 5.8% annual rate. This wasn't a great result and signals it's a low quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Looking at the trend in its profitability, IPG Photonics's operating margin decreased by 37.9 percentage points over the last five years. IPG Photonics's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. Its operating margin for the trailing 12 months was negative 21.3%. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Sadly for IPG Photonics, its EPS declined by 23.6% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. IPG Photonics falls short of our quality standards. After the recent drawdown, the stock trades at 31.9× forward price-to-earnings (or $63.58 per share). This valuation tells us a lot of optimism is priced in - you can find better investment opportunities elsewhere. We'd recommend looking at a safe-and-steady industrials business benefiting from an upgrade cycle. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
Yahoo
04-03-2025
- Business
- Yahoo
Why IPG Photonics Corporation (NASDAQ:IPGP) Could Be Worth Watching
IPG Photonics Corporation (NASDAQ:IPGP), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$81.31 and falling to the lows of US$57.86. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether IPG Photonics' current trading price of US$58.27 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at IPG Photonics's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for IPG Photonics Great news for investors – IPG Photonics is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $83.16, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that IPG Photonics's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. IPG Photonics' revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value. Are you a shareholder? Since IPGP is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on IPGP for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy IPGP. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy. Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in IPG Photonics, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-02-2025
- Business
- Yahoo
IPG Photonics Corp (IPGP) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $234 million in Q4, at the top of guidance, down 22% year over year. Gross Margin: 38.6%, up 40 basis points year over year. Operating Income: $14 million GAAP operating income. Net Income: $8 million or $0.18 per diluted share. Effective Tax Rate: 64% due to unusual tax items. Cash and Cash Equivalents: $930 million with no debt. Cash Flow from Operations: $74 million in Q4. Capital Expenditures: $23 million in Q4, $99 million for the full year. Share Repurchases: $57 million in Q4, $344 million for the full year. Q1 2025 Revenue Guidance: $210 million to $240 million. Q1 2025 Gross Margin Guidance: 36% to 39%. Q1 2025 Adjusted EPS Guidance: $0.05 to $0.35. Q1 2025 Adjusted EBITDA Guidance: $19 million to $35 million. 2025 CapEx Guidance: $105 million to $115 million. Warning! GuruFocus has detected 4 Warning Signs with IPGP. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue for the fourth quarter came in at the high end of guidance, showing resilience in a challenging market. Gross margin improved due to efforts in reducing inventories and lowering product costs. Operating expenses were better than expected, reflecting successful cost reduction strategies. Strong free cash flow and a robust balance sheet with over $900 million in cash and no debt. Strategic investments in new high-power fiber laser platforms and other R&D programs targeting markets exceeding $5 billion in total addressable market. Revenue decreased 22% year over year, with significant declines in welding, cutting, and marking applications. Increased competition, particularly from low-cost Chinese laser cutting systems, impacting market share. Challenging macroeconomic conditions in industrial and automotive markets, including EV, affecting demand. Operating expenses are expected to increase further in 2025 due to strategic investments, impacting near-term profitability. Book-to-bill ratio slightly below 1, indicating ongoing demand challenges and uncertainty in the industrial markets. Q: Can you provide insights into your strategic plan for cutting and other growth areas? A: Mark Gitin, CEO, explained that IPG is launching new high-power fiber lasers with lower-cost platforms and smaller form factors to help OEMs compete in the market, especially against Chinese systems. The focus is on differentiation and profitable growth in areas like urology, micromachining, and advanced applications, targeting markets exceeding $5 billion in TAM. These initiatives are expected to drive growth in 2026 and 2027. Q: How are you addressing competition outside of China, particularly in cutting? A: Mark Gitin, CEO, stated that IPG is providing OEMs with new high-power, smaller form factor lasers at lower costs, allowing them to compete effectively. This strategy focuses on competitive differentiation rather than price, enabling OEMs to maintain market share against Chinese competitors. Q: What is the outlook for revenue and market conditions in 2025? A: Mark Gitin, CEO, mentioned that while they are not providing full-year guidance, the book-to-bill ratio is around 1, indicating stable demand. The industrial markets remain under pressure, but there are signs of inventory normalization among customers. Some contribution from new investments is expected towards the end of the year. Q: Can you explain the anticipated increase in operating expenses in Q1 and how it will be distributed? A: Timothy Mammen, CFO, noted that Q1 OpEx will increase due to stock-based compensation adjustments and target-level bonus accruals. Investments in business growth, particularly in sales, marketing, and R&D, will also contribute. OpEx is expected to stabilize after Q2. Q: What measures are being taken to improve margins, and how are tariffs impacting your operations? A: Timothy Mammen, CFO, highlighted efforts to improve gross margins through inventory control, operational efficiency, and cost reductions in new products. Regarding tariffs, IPG has flexibility in manufacturing locations to mitigate potential impacts, and they do not anticipate significant additional CapEx due to tariffs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
