NASDAQ$IPGP

Ipg Photonics Corp. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

IPG Photonics' Q3 2023 results were negatively impacted by weak industrial demand and lower e-mobility sales in China, but gross margin improved due to focus on manufacturing costs and efficiency.

IPG Photonics reported a 14% year-over-year decrease in revenue to $301 million for Q3 2023, impacted by weak industrial demand and lower e-mobility sales in China. Despite the revenue decline, gross margin improved to 44.1%. EPS decreased by 21% year over year to $1.16.

  • Third quarter revenue decreased 14% year over year to $301 million.
  • Gross margin improved to 44.1%, a 100 basis point increase year over year.
  • Earnings per diluted share (EPS) decreased 21% year over year to $1.16.
  • Sales decreased 28% in China and 13% in North America, but increased 3% in Europe and 41% in Japan year-over-year.

Headline financials

Total Revenue

$301M

Previous: $349M-13.6%
EPS (adj)

$1.16

Previous: $1.47-21.1%
Gross Margin

44.1%

Previous: 43.1%+2.3%
Operating Margin

18.5%

Previous: 26.7%-30.7%
Capital Expenditures

-$85.3M

Previous: -$84.6M-0.8%
Free Cash Flow

-$30.3M

Previous: -$8.29M-265.1%
Net Income

$55M

Previous: $76.3M-27.9%
Operating Income

$55.7M

Previous: $93.2M-40.2%
Gross Profit

$133M

Previous: $150M-11.6%
Cash & Equivalents

$528M

Previous: $869M-39.2%
Total Assets

$2.67B

Previous: $2.96B-9.8%
R&D Expense

$24.7M

No prior period
Stock-Based Comp

$8.14M

Previous: $8.76M-7.1%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$301M

Q3 2023-13.6%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

For the fourth quarter of 2023, IPG expects revenue of $270 million to $300 million and earnings per diluted share in the range of $0.80 to $1.10.

Tailwinds

  • Sales in China should recover with an increase in investment in EV battery capacity in 2024.
  • Sales in the U.S. are likely to benefit from government investment and onshoring initiatives in the next several years.

Headwinds

  • Third quarter book-to-bill was below one due to continued economic uncertainty which is impacting industrial demand in China and Europe
  • European customer activity and sentiment softened during the third quarter.
  • General industrial demand in North America has held up better than expected, but many customers continue to predict a slowdown and are delaying purchase decisions, so our visibility is limited.

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 2023

Historical avgQ3 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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