IPG Photonics Q4 2021 Earnings Report
Key Takeaways
IPG Photonics reported an 8% year-over-year increase in revenue for Q4 2021, reaching $364 million. Growth was driven by strong demand in Europe, North America, and Japan, as well as increased sales in emerging growth products. EPS increased by 32% year over year to $1.21.
Fourth quarter revenue increased 8% year over year to $364 million.
Emerging growth products sales were 38% of total revenue, increasing 57% year over year.
Sales increased 37% in Europe, 30% in North America, and 56% in Japan, while decreasing 20% in China.
Earnings per diluted share (EPS) increased by 32% year over year to $1.21.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
IPG Photonics Revenue by Geographic Location
Forward Guidance
For the first quarter of 2022, IPG expects revenue of $320 to $350 million. The Company expects the first quarter tax rate to be approximately 26%. IPG anticipates delivering earnings per diluted share in the range of $0.85 to $1.15.
Positive Outlook
- Pursuing profitable growth opportunities for IPG products in electric vehicle applications
- Pursuing profitable growth opportunities for IPG products in renewable energy
- Pursuing profitable growth opportunities for IPG products in handheld welding
- Pursuing profitable growth opportunities for IPG products in medical markets
- Pursuing profitable growth opportunities for IPG products in ultrafast lasers
Challenges Ahead
- Diversifying away from the highly competitive high power cutting market in China.
- This will be a transition year for IPG
- Expected strength in emerging growth products
- Expected strength in welding and cutting in Europe, North America and Japan
- Offset by lower sales in high power cutting in China
Revenue & Expenses
Visualization of income flow from segment revenue to net income