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Dec 31, 2019
IPG Photonics Q4 2019 Earnings Report
IPG Photonics' Q4 2019 revenue decreased 7% year-over-year, but exceeded guidance. Net loss per diluted share was $0.08, impacted by foreign exchange losses, higher inventory reserves, and impairment charges. The company generated $130 million in cash from operations.
Key Takeaways
IPG Photonics reported a 7% decrease in fourth-quarter revenue compared to the previous year, totaling $306.6 million. The company experienced a net loss per diluted share of $0.08, influenced by various charges. However, cash from operations remained strong at $130 million.
Fourth quarter revenue decreased 7% year over year to $307 million.
Materials processing sales accounted for 90% of total revenue, decreasing 11% year over year.
Sales decreased 21% in China, 17% in Europe, 37% in Japan and increased 30% in North America on a year over year basis.
Net loss per diluted share was $0.08, reduced by $0.99 due to foreign exchange losses, higher inventory reserves, and impairment charges.
Revenue by Segment
Forward Guidance
For the first quarter of 2020, IPG expects revenue of $220 million to $250 million and earnings per diluted share in the range of $0.00 to $0.30. This guidance assumes approximately $45 million in reduced revenue and $0.45 lower EPS from business disruption related to the novel coronavirus outbreak.
Positive Outlook
- Significant long-term growth opportunities in welding
- Significant long-term growth opportunities in fine processing of electric vehicle batteries
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in microelectronics
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in medical
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in systems and beam delivery solutions
Challenges Ahead
- Business disruption related to the novel coronavirus outbreak
- Product demand
- Order cancellations and delays
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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