IPG Photonics' (IPGP) To Report Q1 Earnings: What's In Store?
Zacks Investment Research | Apr 28, 2019 11:40PM ET
IPG Photonics Corporation (NASDAQ:IPGP) is set to report first-quarter 2019 results on Apr 30.
Past-Quarter Performance
The company reported fourth-quarter 2018 adjusted earnings of $1.40 per share, lagging the Zacks Consensus Estimate by 3 cents.
Further, revenues declined 9% from the year-ago quarter to $330.1 million. However, the figure surpassed the Zacks Consensus Estimate of $314 million.
What to Expect in Q1?
The company provided soft first-quarter guidance owing to macroeconomic headwinds, foreign exchange currency fluctuations and geopolitical tension. For the first quarter, IPG Photonics expects sales in the range of $290 million to $320 million.
The Zacks Consensus Estimate for revenues is currently pegged at $304.47 million, indicating a decline of almost 15.4% from the year-ago quarter.
Management projected earnings in the range of $1.00-$1.20 per share. Notably, estimates have remained unchanged in the past 30 days. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share, suggesting a decline of 46.1% from the year-ago reported quarter.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Sluggish Demand from China: A Major Headwind
IPG Photonics’ dependence on select customers and substantial exposure to China amid tariff imposition are anticipated to negatively impact first-quarter results. Further, trade associated challenges in Europe are likely to be a headwind.
Moreover, sales of high-power CW lasers form a major portion of the company’s top line (56% in the prior-reported quarter). Sluggish demand in China, which is a notable market for high-power products, is anticipated to limit top-line growth in the to-be-reported quarter.
However, strength in cutting systems products and notable demand across aerospace drilling applications is anticipated to support high-power laser domain.
Further, sturdy demand for a variety of products, particularly welding, and government applications across North America, is likely to aid the to-be-reported quarter’s financials.
IPG Photonics Corporation Price and EPS Surprise
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