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Mar 31, 2024
IPG Photonics Q1 2024 Earnings Report
IPG Photonics' financial performance was negatively impacted by delayed e-mobility investments and soft industrial demand, while strong operating cash flow was achieved through working capital management.
Key Takeaways
IPG Photonics reported a 27% year-over-year decrease in first-quarter revenue to $252 million, with sales declining across all major geographies, particularly in China. Despite these challenges, the company generated $55 million in cash from operations and saw a book-to-bill ratio slightly above one, potentially indicating stabilization in industrial demand.
First quarter revenue decreased 27% year over year to $252 million.
Gross margin decreased to 38.7% due to reduced absorption of manufacturing expenses and increased inventory reserves.
Earnings per diluted share (EPS) decreased 59% year over year to $0.52.
The book-to-bill was slightly above one for the first time since the first quarter last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the second quarter of 2024, IPG expects revenue of $240 million to $270 million and earnings per diluted share in the range of $0.30 to $0.60. The Company expects the second quarter tax rate to be approximately 25%, including certain discrete items.
Positive Outlook
- Revenue of $240 million to $270 million is expected.
- Earnings per diluted share in the range of $0.30 to $0.60 is anticipated.
- The company expects the second quarter tax rate to be approximately 25%, including certain discrete items.
- Potential stabilization in industrial demand.
- Modest improvement in industrial demand later in the year.
Challenges Ahead
- Trade policy changes and trade restrictions.
- Product demand uncertainty.
- Order cancellations and delays.
- Competition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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