NASDAQ$IPGP

Ipg Photonics Corp. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

IPG Photonics' Q4 2021 financial performance was driven by growth in Europe, North America, and Japan, along with increased sales of emerging growth products, resulting in exceeding revenue guidance.

IPG Photonics reported an 8% year-over-year increase in revenue for Q4 2021, reaching $364 million. Growth was driven by strong demand in Europe, North America, and Japan, as well as increased sales in emerging growth products. EPS increased by 32% year over year to $1.21.

  • Fourth quarter revenue increased 8% year over year to $364 million.
  • Emerging growth products sales were 38% of total revenue, increasing 57% year over year.
  • Sales increased 37% in Europe, 30% in North America, and 56% in Japan, while decreasing 20% in China.
  • Earnings per diluted share (EPS) increased by 32% year over year to $1.21.

Headline financials

Total Revenue

$364M

Previous: $337M+8.3%
EPS (adj)

$1.21

Previous: $0.92+31.5%
Gross Margin

45.5%

Previous: 43.6%+4.4%
Operating Margin

23.3%

Previous: 19.4%+20.1%
Capital Expenditures

$29.3M

Previous: $25.8M+13.3%
Free Cash Flow

$55.3M

Previous: $59.5M-7.1%
Net Income

$65.3M

Previous: $49.7M+31.4%
Operating Income

$84.8M

Previous: $65.2M+30.0%
Gross Profit

$166M

Previous: $147M+13.0%
Cash & Equivalents

$709M

Previous: $876M-19.1%
Total Assets

$3.17B

Previous: $2.94B+8.0%
Stock-Based Comp

$9.33M

Previous: $9.08M+2.8%

Revenue & EPS history

IPG Photonics · Revenue · Quarterly

$364M

Q4 2021+8.3%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

IPG Photonics · $364M total across 2 segments · Q4 2021

  • Materials Processing
    $317M+4.5%
  • Other Applications
    $47.3M+40.6%

Forward guidance

For the first quarter of 2022, IPG expects revenue of $320 to $350 million. The Company expects the first quarter tax rate to be approximately 26%. IPG anticipates delivering earnings per diluted share in the range of $0.85 to $1.15.

Tailwinds

  • Pursuing profitable growth opportunities for IPG products in electric vehicle applications
  • Pursuing profitable growth opportunities for IPG products in renewable energy
  • Pursuing profitable growth opportunities for IPG products in handheld welding
  • Pursuing profitable growth opportunities for IPG products in medical markets
  • Pursuing profitable growth opportunities for IPG products in ultrafast lasers

Headwinds

  • Diversifying away from the highly competitive high power cutting market in China.
  • This will be a transition year for IPG
  • Expected strength in emerging growth products
  • Expected strength in welding and cutting in Europe, North America and Japan
  • Offset by lower sales in high power cutting in China

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 Q4 2021

Historical avgQ4 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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