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Sep 30, 2022
IPG Photonics Q3 2022 Earnings Report
IPG Photonics experienced strong demand from e-mobility and medical, which was offset by currency headwinds and softer general industrial demand in China and Europe.
Key Takeaways
IPG Photonics reported a decrease in revenue by 8% year over year, totaling $349 million for the third quarter. Despite challenges like currency headwinds and softer demand in certain regions, the company saw upward momentum in emerging growth products, with particular strength in e-mobility and medical applications. Earnings per diluted share increased 5% year over year to $1.47.
Third quarter revenue decreased 8% year over year to $349 million.
Emerging growth products sales accounted for 43% of total revenue.
Earnings per diluted share (EPS) increased 5% year over year to $1.47.
Sales increased 1% in North America and decreased 13% in Europe, 14% in China and 21% in Japan on a year-over-year basis.
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 2022, IPG expects revenue of $300 to $330 million and anticipates delivering earnings per diluted share in the range of $0.70 to $1.00. The fourth quarter guidance range is reduced by approximately $28 million due to foreign currency headwinds that are related to the current strength of the U.S. dollar as compared to the fourth quarter of 2021.
Positive Outlook
- Macro trends such as e-mobility should continue to drive higher demand for our lasers.
- Investments in renewable energy should continue to drive higher demand for our lasers.
- Automation should continue to drive higher demand for our lasers.
- Focus on energy efficiency due to increased energy costs should continue to drive higher demand for our lasers.
Challenges Ahead
- Revenue of $300 to $330 million is expected for Q4 2022.
- The Company expects the fourth quarter tax rate to be approximately 25%.
- EPS is expected to be in the range of $0.70 to $1.00.
- The fourth quarter guidance range is reduced by approximately $28 million due to foreign currency headwinds that are related to the current strength of the U.S. dollar as compared to the fourth quarter of 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income