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Sep 30, 2024
IPG Photonics Q3 2024 Earnings Report
IPG Photonics' Q3 2024 financial performance reflected strategic progress and operational adjustments amid a challenging demand environment.
Key Takeaways
IPG Photonics reported Q3 2024 revenue of $233 million, a 23% decrease year-over-year. The company's results were at the high end of guidance when adjusted for divested revenue. Adjusted diluted EPS was $0.29, with a reported loss per diluted share of $5.33 due to divestiture and asset impairment charges.
Third-quarter revenue decreased 23% year over year, totaling $233 million.
Gross margin was 23.2%, significantly lower year over year due to increased inventory provision and reduced absorption of manufacturing expenses.
Sales decreased across all major regions, including North America, China, Europe, and Japan.
The company completed its exit from Russia and is expanding in high-precision laser cleaning applications with the acquisition of cleanLASER.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the fourth quarter of 2024, IPG expects revenue of $210 million to $240 million, gross margin between 35% and 38%, and operating expenses of $78 million to $80 million. The Company expects the fourth quarter tax rate to be approximately 25%, including certain discrete items. IPG anticipates delivering earnings per diluted share in the range of $0.05 to $0.35. This guidance excludes Russian operations which were sold in the third quarter.
Positive Outlook
- Revenue of $210 million to $240 million
- Gross margin between 35% and 38%
- Earnings per diluted share in the range of $0.05 to $0.35
- Operating expenses of $78 million to $80 million
- Tax rate to be approximately 25%
Challenges Ahead
- Trade policy changes and trade restrictions
- Product demand
- Order cancellations and delays
- Competition
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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