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Sep 30, 2020
IPG Photonics Q3 2020 Earnings Report
IPG Photonics' Q3 2020 results were announced, with revenue exceeding guidance and gross margin increasing despite a goodwill impairment charge.
Key Takeaways
IPG Photonics reported Q3 2020 revenue of $318.4 million, a 3% decrease year-over-year, but above the guidance range. Earnings per diluted share were $0.66, impacted by a $0.63 reduction due to a goodwill impairment charge. Despite the revenue decrease, gross margin improved by 160 basis points year-over-year. Sales growth in China and sequential improvement in Europe contributed to the results.
Third quarter revenue reached $318 million, exceeding the high end of guidance.
Earnings per diluted share were $0.66, reduced by $0.63 due to a goodwill impairment charge.
Sales in China increased by 22%, while sales decreased in Europe, Japan, and North America.
Gross margin increased by 160 basis points year-over-year despite a 3% decrease in revenue.
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 fourth quarter of 2020, IPG expects revenue of $290 to $320 million and earnings per diluted share in the range of $0.75 to $1.05.
Positive Outlook
- Growth opportunities in ultra-high power cutting
- Growth opportunities in electric vehicle battery processing
- Growth opportunities in medical procedures
- Growth opportunities in advanced applications
- Strides in higher power products
Challenges Ahead
- Considerable macroeconomic uncertainty due to the pandemic
- Impacts to the global business environment
- Public health requirements
- Government mandates
- Risk of order cancellations and delays
Revenue & Expenses
Visualization of income flow from segment revenue to net income