A Preview Of IPG Photonics's Earnings

IPG Photonics IPGP is set to give its latest quarterly earnings report on Tuesday, 2024-10-29. Here's what investors need to know before the announcement.

Analysts estimate that IPG Photonics will report an earnings per share (EPS) of $0.19.

Anticipation surrounds IPG Photonics's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

Last quarter the company missed EPS by $0.06, which was followed by a 0.99% drop in the share price the next day.

Here's a look at IPG Photonics's past performance and the resulting price change:

Performance of IPG Photonics Shares

Shares of IPG Photonics were trading at $76.82 as of October 25. Over the last 52-week period, shares are down 8.67%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on IPG Photonics

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on IPG Photonics.

Analysts have provided IPG Photonics with 2 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $100.0, suggesting a potential 30.17% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Plexus, TTM Technologies and Benchmark Electronics, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Plexus received a Buy consensus from analysts, with an average 1-year price target of $156.75, implying a potential 104.05% upside.
• The consensus among analysts is an Buy trajectory for TTM Technologies, with an average 1-year price target of $24.31, indicating a potential 68.35% downside.
• For Benchmark Electronics, analysts project an Buy trajectory, with an average 1-year price target of $45.5, indicating a potential 40.77% downside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for Plexus, TTM Technologies and Benchmark Electronics are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

IPG Photonics ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.

Discovering IPG Photonics: A Closer Look

IPG Photonics Corp is a vertically integrated developer and manufacturer of high-performance fiber lasers, fiber amplifiers, and diode lasers, which are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. A large majority of the firm's revenue is derived from materials processing applications for fiber lasers, including cutting and welding, marking and engraving, and micro-processing. The company generates a majority of its revenue from China and also has its presence in North America, Japan, Germany, and other markets.

Understanding the Numbers: IPG Photonics's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: IPG Photonics's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -24.22%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: IPG Photonics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.82% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): IPG Photonics's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.88%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.79%, the company showcases effective utilization of assets.

Debt Management: IPG Photonics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.

To track all earnings releases for IPG Photonics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.