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Jun 30, 2020
IPG Photonics Q2 2020 Earnings Report
IPG Photonics' second quarter results exceeded guidance due to strong performance in China and new products, despite challenges from the COVID-19 pandemic.
Key Takeaways
IPG Photonics reported a 19% year-over-year decrease in revenue to $296 million for Q2 2020, but exceeded their guidance range due to better-than-expected performance in China and strength in new products. EPS decreased 47% year over year to $0.71, which was reduced by $0.20 due to foreign exchange losses and restructuring charges. The company generated $73 million in cash from operations during the quarter.
Second quarter revenue decreased 19% year over year to $296 million.
Earnings per diluted share decreased 47% year over year to $0.71, reduced by $0.20 from foreign exchange loss and restructuring.
Materials processing sales decreased 21% year over year, while sales into other applications increased 36% year over year.
Sales decreased 11% in China, 24% in Europe, 16% in Japan and 16% in North America year over year.
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 third quarter of 2020, IPG expects revenue of $280 million to $310 million and earnings per diluted share in the range of $0.70 to $1.00.
Positive Outlook
- Near-term growth opportunities in ultra-high power cutting.
- Growth opportunities in electric vehicle battery processing.
- Growth opportunities in systems and devices for the medical industry.
- Strides in higher power products within our core materials processing business.
- New solutions will enable the company to emerge from the pandemic in a stronger competitive position.
Challenges Ahead
- Visibility into a recovery in global demand remains uncertain.
- Financial guidance is subject to greater risk and uncertainty given the COVID-19 pandemic.
- Impacts to the global business environment.
- Impacts to public health requirements.
- Impacts to government mandates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income