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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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