IPG Photonics Q2 2023 Earnings Report
Key Takeaways
IPG Photonics reported a decrease in revenue for the second quarter of 2023, with sales declining by 10% year-over-year. Despite the overall decrease, the company saw growth in welding and cleaning applications driven by e-mobility. The company expects revenue of $300 million to $330 million and earnings per diluted share in the range of $0.85 to $1.15 for the third quarter of 2023.
Second quarter revenue decreased 10% year over year to $340 million.
Materials processing sales accounted for 92% of total revenue, decreasing 8% year over year.
Sales decreased 28% in China and 11% in North America, but increased 4% in Europe and 14% in Japan on a year-over-year basis.
Earnings per diluted share (EPS) of $1.31 increased 19% year over year.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
Forward Guidance
For the third quarter of 2023, IPG expects revenue of $300 million to $330 million. The Company expects the third quarter tax rate to be approximately 25%. IPG anticipates delivering earnings per diluted share in the range of $0.85 to $1.15.
Positive Outlook
- Continued strong orders in e-mobility applications, driven by increased investments in EV battery capacity in Europe, North America, Korea and Japan, which should drive sales for our welding, foil cutting and cleaning solutions.
- Increasing orders for 3D printing applications.
- Increasing orders for laser diode heating and drying solutions.
- Additional opportunities for 3D printing applications in the second half of 2023.
- Additional opportunities for laser diode heating and drying solutions in the second half of 2023.
Challenges Ahead
- Increased economic uncertainty negatively impacted customer orders in our key geographies.
- General industrial demand in Europe has weakened.
- General industrial demand in North America has weakened.
- Industrial demand and EV investment remain soft in China.
- Actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, 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