NASDAQ$IPGP

Ipg Photonics Corp. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

IPG Photonics' performance driven by increased economic activity and strategic focus, resulting in revenue growth and improved earnings.

IPG Photonics reported a strong second quarter with revenue of $372 million, a 25% increase year-over-year, and earnings per diluted share of $1.29, an 82% increase year-over-year. The company benefited from improved demand in Europe and the U.S., particularly in cutting and welding applications.

  • Revenue increased 25% year-over-year to $372 million, driven by improved demand in Europe and the U.S.
  • Earnings per diluted share increased 82% year-over-year to $1.29.
  • Materials processing sales accounted for 93% of total revenue, increasing 27% year-over-year.
  • Sales increased 10% in China, 50% in Europe, and 23% in North America.

Headline financials

Total Revenue

$372M

Previous: $296M+25.4%
EPS (adj)

$1.29

Previous: $0.91+41.8%
Gross Margin

48.6%

Previous: 46.0%+5.7%
Operating Margin

24.8%

Previous: 15.9%+56.0%
Capital Expenditures

-$54.3M

Previous: -$37.4M-45.4%
Free Cash Flow

$15.5M

Previous: $856K+1705.6%
Net Income

$69.8M

Previous: $38.2M+82.6%
Operating Income

$92.3M

Previous: $47.2M+95.4%
Gross Profit

$181M

Previous: $136M+32.3%
Cash & Equivalents

$754M

Previous: $748M+0.8%
Total Assets

$3.09B

Previous: $2.76B+11.9%
Stock-Based Comp

$9.86M

Previous: $9.22M+6.9%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$372M

Q2 2021+25.4%vs Q2 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

IPG Photonics · $372M total across 2 segments · Q2 2021

  • Materials Processing
    $346M+26.8%
  • Other Applications
    $25.9M+9.4%

Forward guidance

For the third quarter of 2021, IPG expects revenue of $350 to $380 million and earnings per diluted share in the range of $1.10 to $1.40.

Tailwinds

  • Strength in battery and other precision applications in China
  • Robust revenue expected outside of China
  • Significant long-term growth opportunities
  • Leading market position in cutting
  • New product introductions such as the LightWELD handheld laser

Headwinds

  • More difficult comparison to the third quarter 2020
  • Deliveries for cutting applications in China are likely to be extended
  • Continued uncertainty due to the ongoing impact of supply chain constraints on our customers
  • Impacts of COVID-19 on our business
  • General economic conditions

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 2021

Historical avgQ2 2021

-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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