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Mar 31, 2020
IPG Photonics Q1 2020 Earnings Report
IPG Photonics' Q1 2020 financial results were announced, with earnings per diluted share of $0.68, which included a $0.28 increase due to foreign exchange gains. The company also increased its share repurchase program by $200 million.
Key Takeaways
IPG Photonics reported a 21% year-over-year decrease in first-quarter revenue, totaling $249 million. EPS decreased by 33% year-over-year to $0.68, but was positively impacted by foreign exchange gains of $0.28. The company's book-to-bill ratio was meaningfully greater than 1.0. They have increased the share repurchase program by $200 million.
First quarter revenue decreased 21% year over year to $249 million.
Earnings per diluted share decreased 33% year over year to $0.68, including a $0.28 benefit from foreign exchange gains.
Sales of materials processing decreased 28% year over year, while sales into other applications increased 123%.
Sales decreased 40% in China, 15% in Europe, 12% in Japan and increased 4% in North America.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the second quarter of 2020, IPG expects revenue of $260 million to $290 million and earnings per diluted share in the range of $0.40 to $0.70.
Positive Outlook
- Target significant longer-term growth opportunities in laser welding.
- Target significant longer-term growth opportunities in electric vehicle battery processing.
- Target significant longer-term growth opportunities in our portfolio of new products.
- Strong balance sheet will help us through the crisis
- Emerge with the ability to capitalize on the many opportunities we have ahead
Challenges Ahead
- Global demand environment remains very uncertain given the effects of COVID-19 on manufacturing facilities
- Global demand environment remains very uncertain given customer confidence around the world.
- Seen a rebound in China-based order volumes in the latter half of March and April.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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