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Dec 31, 2020
IPG Photonics Q4 2020 Earnings Report
Delivered revenue that was 10% higher than the fourth quarter 2019, driven by higher sales in cutting applications and strength in advanced applications and devices used in medical procedures.
Key Takeaways
IPG Photonics reported a strong fourth quarter, with revenue increasing by 10% year-over-year. Book-to-bill was above one, indicating strong order flow. Despite challenges from COVID-19, the company ended the year well-positioned for 2021.
Revenue increased 10% year over year.
Materials processing accounted for 90% of total revenue, increasing 10% year over year.
Sales in China increased 52%, while sales decreased in Europe, Japan and North America.
Earnings per diluted share increased by more than 100% year over year.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.com Forward Guidance
For the first quarter of 2021, IPG expects revenue of $310 to $340 million and earnings per diluted share in the range of $0.90 to $1.20.
Positive Outlook
- Sales improve in core materials processing market
- Ability to grow in other applications outside of cutting and welding
- Growth primarily in advanced applications
- Growth in electric vehicle battery processing
- Growth in micro-processing and medical
Challenges Ahead
- Considerable macroeconomic uncertainty related to the pandemic remains
- Financial guidance is subject to greater risk and uncertainty given the COVID-19 pandemic
- Impacts on the global business environment
- Impacts on public health requirements
- Impacts on government mandates
Revenue & Expenses
Visualization of income flow from segment revenue to net income