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Jun 30, 2023
IPG Photonics Q2 2023 Earnings Report
IPG Photonics' financial performance was impacted by softer demand in industrial markets, while experiencing continued growth in welding and cleaning applications driven by e-mobility.
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.
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.
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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