NASDAQ$IPGP

Ipg Photonics Corp. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

IPG Photonics experienced a decrease in revenue and earnings per share due to soft demand in cutting and marking applications, partially offset by growth in welding, cleaning, and solar cell applications.

IPG Photonics reported a 6% decrease in first-quarter revenue to $347 million, with earnings per diluted share decreasing by 4% to $1.26. The company's welding revenue grew, driven by record sales in EV battery applications and LightWELD, while diversification efforts helped offset softer demand in cutting and marking applications. Sales decreased in North America, Europe, and China, but increased in Japan.

  • First quarter revenue decreased 6% year over year to $347 million.
  • Earnings per diluted share decreased 4% year over year to $1.26.
  • Welding revenue grew, driven by record sales into EV battery applications and all-time high sales for LightWELD.
  • Sales decreased 1% in North America, 7% in Europe, and 22% in China, but were up 68% in Japan year-over-year.

Headline financials

Total Revenue

$347M

Previous: $370M-6.2%
EPS (adj)

$1.26

Previous: $1.31-3.8%
Gross Margin

42.3%

Previous: 46.4%-8.8%
Operating Margin

21.7%

Previous: 25.2%-13.9%
Capital Expenditures

-$33.4M

Previous: -$25.2M-32.7%
Free Cash Flow

$26.7M

Previous: $44.4M-39.8%
Net Income

$60.1M

Previous: $69.6M-13.6%
Operating Income

$75.4M

Previous: $93.1M-19.0%
Gross Profit

$147M

Previous: $172M-14.5%
Cash & Equivalents

$521M

Previous: $643M-18.9%
Total Assets

$2.67B

Previous: $3.1B-13.8%
Stock-Based Comp

$9.58M

Previous: $9.99M-4.2%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$347M

Q1 2023-6.2%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

IPG Photonics · $347M total across 2 segments · Q1 2023

  • Materials Processing
    $312M-8.3%
  • Other Applications
    $34.7M+17.2%

Forward guidance

For the second quarter of 2023, IPG expects revenue of $325 million to $355 million and earnings per diluted share in the range of $1.05 to $1.35. The Company expects the second quarter tax rate to be approximately 26%.

Tailwinds

  • Orders from e-mobility and solar cell manufacturing remain strong across several geographies.
  • Significant new investments going into e-mobility and solar cell manufacturing markets.
  • Focusing resources on developing new product offerings, such as cleaning solutions.
  • Broadening exposure in emerging growth opportunities.
  • Driving adoption of laser technologies across different applications.

Headwinds

  • Soft industrial demand across many regions.
  • Actual results may differ from guidance due to trade policy changes and trade restrictions with Russia.
  • The COVID-19 pandemic may impact actual results.
  • Product demand, order cancellations and delays may impact actual results.
  • Competition, tariffs, currency fluctuations and general economic conditions may impact actual results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.7%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-2.3%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+35.5%

Q4 2025

Best reaction

-26.2%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-25.1%-14.6%+0.1%
Q4 2025+35.5%+21.6%+0.0%
Q3 2025-0.2%-2.3%-9.9%
Q1 2025-13.0%-4.7%+8.4%
Q4 2024-5.5%-5.7%-11.7%
Q3 2024+5.1%+3.8%-2.5%
Q2 2024-8.2%-18.5%-21.0%
Q1 2024-5.7%-2.1%-3.9%
Q4 2023-15.2%-16.5%-16.0%
Q3 2023+4.0%+9.8%+14.4%
Q2 2023-15.1%-17.2%-17.6%
Q1 2023+0.7%+0.2%-6.4%
Q4 2022+16.5%+16.6%+6.5%
Q3 2022+2.6%+2.5%+8.3%
Q2 2022-3.9%-5.4%-16.0%
Q1 2022+10.7%+1.9%+5.9%
Q4 2021-4.1%-6.7%-20.5%
Q3 2021+7.6%+5.0%-0.5%
Q2 2021-17.3%-16.5%-20.3%
Q1 2021-10.4%-6.7%-5.0%
Q4 2020-6.1%-7.2%-16.7%
Q3 2020+1.9%+3.6%+8.8%
Q2 2020-7.4%-9.3%-9.3%
Q1 2020+21.1%+27.7%+35.5%
Q4 2019-5.2%-7.7%-23.7%
Q3 2019-7.1%-2.9%+0.7%
Q2 2019-6.0%-15.0%-12.0%
Q1 2019-1.3%-0.9%-25.7%
Q4 2018+8.8%+12.8%+8.9%
Q3 2018+1.7%+11.0%+7.6%
Q2 2018-26.2%-24.0%-23.0%
Q1 2018+6.3%+9.5%+13.3%
Q4 2017-7.7%-4.3%-4.7%
Q3 2017-0.6%+3.0%+10.3%
Q2 2017+6.2%+5.3%+15.2%
Q1 2017+6.9%+5.6%+11.1%
Q4 2016+4.9%+2.9%+3.5%
Q3 2016+14.2%+12.2%+14.8%
Q2 2016+0.0%-1.5%+3.3%
Q1 2016-15.6%
Q4 2015-2.5%
Q3 2015+11.7%
Q2 2015+16.8%
Q1 2015-2.2%
Q4 2014+9.4%
Q3 2014+5.9%
Q2 2014+8.3%
Q1 2014-5.2%
Q4 2013+1.6%
Q3 2013-9.1%
Q2 2013-0.7%
Q1 2013-9.1%
Q1 2011+2.6%
Q4 2012-10.6%
Q3 2012-5.4%
Q4 2011+10.5%
Q2 2012+11.9%
Q1 2012+11.0%
Q4 2009-6.1%
Q1 2010-6.1%
Q3 2011-7.1%
Q3 2010-7.1%
Q4 2010-4.0%
Q2 2010-4.0%
Q2 2011-4.0%

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