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Jun 30, 2022
IPG Photonics Q2 2022 Earnings Report
IPG Photonics experienced sales growth driven by strong performance in electric vehicle and medical applications.
Key Takeaways
IPG Photonics reported a 1% increase in revenue year-over-year, reaching $377 million. Growth was driven by strong sales in North America and Japan, particularly in e-mobility and medical applications. EPS decreased by 15% year over year to $1.10, impacted by foreign exchange transaction losses.
Second quarter revenue increased 1% year over year to $377 million, with exchange rates reducing revenue by approximately $18 million on a constant currency basis.
Sales into Other applications increased 29% year over year, driven by the strength in medical.
By region, sales increased 33% in North America, 43% in Japan, and 2% in Europe, and decreased 14% in China on a year-over-year basis.
Earnings per diluted share (EPS) of $1.10 decreased by 15% 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 2022, IPG expects revenue of $350 to $380 million and earnings per diluted share in the range of $1.00 to $1.30. The Company expects the third quarter tax rate to be approximately 25%.
Positive Outlook
- Fiber laser adoption will continue to drive demand across many applications and geographies
- Benefit from global trends including increasing automation
- Benefit from global trends including e-mobility
- Benefit from global trends including renewable energy
- Benefit from global trends including energy efficiency as energy costs rise globally
Challenges Ahead
- Operating environment is uncertain
- Bookings declined from the record level last quarter on more moderate demand in Europe
- Currency headwinds
- Third quarter guidance range is reduced by approximately $15 million due to foreign currency translation headwinds that are primarily related to the strength of the U.S. dollar as compared to the Euro and Chinese Yuan.
- Actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions with Russia, the COVID-19 pandemic, product demand, order cancellations and delays, competition, tariffs, currency fluctuations and general economic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income