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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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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