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Mar 31, 2023
IPG Photonics Q1 2023 Earnings Report
IPG Photonics experienced a decrease in revenue and earnings per share due to soft demand in cutting and marking applications, partially offset by growth in welding, cleaning, and solar cell applications.
Key Takeaways
IPG Photonics reported a 6% decrease in first-quarter revenue to $347 million, with earnings per diluted share decreasing by 4% to $1.26. The company's welding revenue grew, driven by record sales in EV battery applications and LightWELD, while diversification efforts helped offset softer demand in cutting and marking applications. Sales decreased in North America, Europe, and China, but increased in Japan.
First quarter revenue decreased 6% year over year to $347 million.
Earnings per diluted share decreased 4% year over year to $1.26.
Welding revenue grew, driven by record sales into EV battery applications and all-time high sales for LightWELD.
Sales decreased 1% in North America, 7% in Europe, and 22% in China, but were up 68% in Japan year-over-year.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.com Forward Guidance
For the second quarter of 2023, IPG expects revenue of $325 million to $355 million and earnings per diluted share in the range of $1.05 to $1.35. The Company expects the second quarter tax rate to be approximately 26%.
Positive Outlook
- Orders from e-mobility and solar cell manufacturing remain strong across several geographies.
- Significant new investments going into e-mobility and solar cell manufacturing markets.
- Focusing resources on developing new product offerings, such as cleaning solutions.
- Broadening exposure in emerging growth opportunities.
- Driving adoption of laser technologies across different applications.
Challenges Ahead
- Soft industrial demand across many regions.
- Actual results may differ from guidance due to trade policy changes and trade restrictions with Russia.
- The COVID-19 pandemic may impact actual results.
- Product demand, order cancellations and delays may impact actual results.
- Competition, tariffs, currency fluctuations and general economic conditions may impact actual results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income