NASDAQ$IPGP

Ipg Photonics Corp. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

IPG Photonics experienced strong demand from e-mobility and medical, which was offset by currency headwinds and softer general industrial demand in China and Europe.

IPG Photonics reported a decrease in revenue by 8% year over year, totaling $349 million for the third quarter. Despite challenges like currency headwinds and softer demand in certain regions, the company saw upward momentum in emerging growth products, with particular strength in e-mobility and medical applications. Earnings per diluted share increased 5% year over year to $1.47.

  • Third quarter revenue decreased 8% year over year to $349 million.
  • Emerging growth products sales accounted for 43% of total revenue.
  • Earnings per diluted share (EPS) increased 5% year over year to $1.47.
  • Sales increased 1% in North America and decreased 13% in Europe, 14% in China and 21% in Japan on a year-over-year basis.

Headline financials

Total Revenue

$349M

Previous: $379M-8.0%
EPS (adj)

$1.47

Previous: $1.40+5.0%
Gross Margin

43.1%

Previous: 49.0%-12.0%
Operating Margin

26.7%

Previous: 26.9%-0.7%
Capital Expenditures

-$84.6M

Previous: -$93.9M+9.9%
Free Cash Flow

-$8.29M

Previous: -$18.5M+55.1%
Net Income

$76.3M

Previous: $75.4M+1.1%
Operating Income

$93.2M

Previous: $102M-8.7%
Gross Profit

$150M

Previous: $186M-19.1%
Cash & Equivalents

$869M

Previous: $795M+9.4%
Total Assets

$2.96B

Previous: $3.14B-5.8%
Stock-Based Comp

$8.76M

Previous: $9.86M-11.1%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$349M

Q3 2022-8%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

IPG Photonics · $349M total across 2 segments · Q3 2022

  • Materials Processing
    $314M-8.9%
  • Other Applications
    $34.9M+2.3%

Forward guidance

For the fourth quarter of 2022, IPG expects revenue of $300 to $330 million and anticipates delivering earnings per diluted share in the range of $0.70 to $1.00. The fourth quarter guidance range is reduced by approximately $28 million due to foreign currency headwinds that are related to the current strength of the U.S. dollar as compared to the fourth quarter of 2021.

Tailwinds

  • Macro trends such as e-mobility should continue to drive higher demand for our lasers.
  • Investments in renewable energy should continue to drive higher demand for our lasers.
  • Automation should continue to drive higher demand for our lasers.
  • Focus on energy efficiency due to increased energy costs should continue to drive higher demand for our lasers.

Headwinds

  • Revenue of $300 to $330 million is expected for Q4 2022.
  • The Company expects the fourth quarter tax rate to be approximately 25%.
  • EPS is expected to be in the range of $0.70 to $1.00.
  • The fourth quarter guidance range is reduced by approximately $28 million due to foreign currency headwinds that are related to the current strength of the U.S. dollar as compared to the fourth quarter of 2021.

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 Q3 2022

Historical avgQ3 2022

-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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