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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.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
IPG Photonics Revenue by Geographic Location
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com 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.
- Declining bookings in other regions, including Western Europe, North America and other countries in Asia.
- Visibility into a recovery in global demand remains uncertain at this time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income