NASDAQ$IPGP

Ipg Photonics Corp. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

IPG Photonics' second quarter results exceeded guidance due to strong performance in China and new products, despite challenges from the COVID-19 pandemic.

IPG Photonics reported a 19% year-over-year decrease in revenue to $296 million for Q2 2020, but exceeded their guidance range due to better-than-expected performance in China and strength in new products. EPS decreased 47% year over year to $0.71, which was reduced by $0.20 due to foreign exchange losses and restructuring charges. The company generated $73 million in cash from operations during the quarter.

  • Second quarter revenue decreased 19% year over year to $296 million.
  • Earnings per diluted share decreased 47% year over year to $0.71, reduced by $0.20 from foreign exchange loss and restructuring.
  • Materials processing sales decreased 21% year over year, while sales into other applications increased 36% year over year.
  • Sales decreased 11% in China, 24% in Europe, 16% in Japan and 16% in North America year over year.

Headline financials

Total Revenue

$296M

Previous: $364M-18.5%
EPS (adj)

$0.91

Previous: $1.34-32.1%
Gross Margin

46.0%

Previous: 49.5%-7.1%
Operating Margin

15.9%

Previous: 25.0%-36.4%
Capital Expenditures

-$37.4M

Previous: -$86.5M+56.8%
Free Cash Flow

$856K

Previous: -$14.2M+106.0%
Net Income

$38.2M

Previous: $72.3M-47.1%
Operating Income

$47.2M

Previous: $91.1M-48.2%
Gross Profit

$136M

Previous: $180M-24.3%
Cash & Equivalents

$748M

Previous: $530M+41.1%
Total Assets

$2.76B

Previous: $2.74B+0.8%
Stock-Based Comp

$9.22M

Previous: $8.89M+3.7%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$296M

Q2 2020-18.5%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

IPG Photonics · $296M total across 2 segments · Q2 2020

  • Materials Processing
    $273M-21.1%
  • Other Applications
    $23.7M+34.4%

Forward guidance

For the third quarter of 2020, IPG expects revenue of $280 million to $310 million and earnings per diluted share in the range of $0.70 to $1.00.

Tailwinds

  • Near-term growth opportunities in ultra-high power cutting.
  • Growth opportunities in electric vehicle battery processing.
  • Growth opportunities in systems and devices for the medical industry.
  • Strides in higher power products within our core materials processing business.
  • New solutions will enable the company to emerge from the pandemic in a stronger competitive position.

Headwinds

  • Visibility into a recovery in global demand remains uncertain.
  • Financial guidance is subject to greater risk and uncertainty given the COVID-19 pandemic.
  • Impacts to the global business environment.
  • Impacts to public health requirements.
  • Impacts to government mandates.

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 Q2 2020

Historical avgQ2 2020

-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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