IPG Photonics (IPGP) Q1 Earnings & Revenues Beat Estimates
Zacks Investment Research | May 03, 2018 12:03AM ET
IPG Photonics Corporation (NASDAQ:IPGP) delivered first-quarter 2018 adjusted earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 13 cents. The figure was better than the guided range of $1.62-$1.87.
The strong year-over-year growth was driven by a 26% surge in sales from the year-ago quarter to $359.9 million. The figure surpassed the Zacks Consensus Estimate of $347 and also outperformed managements guided range of $330-$355 million.
Materials processing jumped 28% year over year and accounted for approximately 94% of total sales driven by strength in 3D printing and cutting applications.
IPG Photonics is benefiting from strong adoption of fiber lasers over conventional lasers as well as non-laser cutting and welding equipment. According to management, secular transition to high powered products and increased electric vehicle battery production were the primary drivers behind the increased adoption of the high powered lasers.
The year-over-year sales growth was driven by robust performance in China, Europe and Japan with strong demand across a variety of applications and industries. Apart from strong order flow, robust integration of the company’s business model with vertically-integrated manufacturing operation, production & operations management, customer credit management and global administration aided growth.
IPG Photonics’ stock has returned 5.7% in the past year, underperforming Zacks Investment Research
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