IPG Photonics Corp

IPGP

Equity

ISIN US44980X1090 / Valor 1196227

NASDAQ (2024-11-22)

USD 77.79+3.98%

IPG Photonics Corp
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About company

IPG Photonics Corp, founded in 1991 by physicist Valentin P. Gapontsev, Ph.D., is a leading developer and manufacturer of high-performance fiber lasers and amplifiers for various applications in multiple markets. Originally focusing on customized glass and crystal lasers, wireless temperature meters, and laser components, the company shifted its focus to high-power fiber lasers and amplifiers in the early 1990s. With a global presence, IPG's diverse lines of low, medium, and high-power lasers and amplifiers are utilized in materials processing, communications, entertainment, medical, biotechnology, scientific, and advanced applications, displacing traditional technologies. The company, which went public in 2006 and is listed on the NASDAQ Global Select Market, invests in high-capacity production facilities to manufacture its own laser diode pumps, ensuring quality and reliability in its products.

Summarized from source with an LLMView SourceSector: Technology

Revenue Decline

IPG Photonics Corp reported a revenue of $257.6 million for the second quarter of 2024, marking a 24% decrease compared to the same period in 2023. The decline was influenced by changes in foreign exchange rates, which reduced revenue by approximately $6 million or 2%. Regionally, sales decreased 2% in North America, 34% in China, 27% in Europe, and 39% in Japan.

Gross Margin Reduction

The gross margin for IPG Photonics Corp in the second quarter of 2024 was 37.3%, a decrease of 610 basis points from the previous year. This reduction was primarily due to lower absorption of manufacturing expenses and increased inventory reserves, although it was partially offset by lower tariffs and shipping costs.

Net Income and EPS

IPG Photonics Corp's net income attributable to the company for the second quarter of 2024 was $20.2 million, a 68% decrease from the same quarter in 2023. Earnings per diluted share (EPS) also saw a significant drop, coming in at $0.45, down 66% year over year.

Cash Flow and Expenditures

During the second quarter of 2024, IPG Photonics Corp generated $53 million in cash from operations. The company spent $24 million on capital expenditures and $122 million on share repurchases, reflecting its focus on financial execution and cash generation.

Business Outlook

For the third quarter of 2024, IPG Photonics Corp expects revenue to be between $210 million and $240 million. The company anticipates a gross margin between 34% and 37%, with operating expenses ranging from $82 million to $84 million. The expected earnings per diluted share are projected to be in the range of $0.00 to $0.30.

Summarized from source with an LLMView Source

Key figures

-18.6%1Y

-52.6%3Y

-44.2%5Y

Performance

35.1%1Y

39.3%3Y

43.4%5Y

Volatility