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Dec 31, 2024
IPG Photonics Q4 2024 Earnings Report
Key Takeaways
IPG Photonics reported Q4 2024 revenue of $234.3 million, a 22% decline year-over-year, due to weaker sales in materials processing and medical applications. Net income decreased significantly to $7.8 million, an 81% drop. EPS fell 80% to $0.18. Operating income declined 51% to $14 million. The company generated strong cash flow from operations of $74 million and repurchased $57 million in shares.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
IPG expects Q1 2025 revenue between $210M and $240M, with gross margin between 36% and 39%. Operating expenses projected at $82M to $84M. Adjusted EPS forecasted between $0.05 and $0.35.
Positive Outlook
- Strong balance sheet supports strategic investments.
- Improved gross margin due to lower product and shipping costs.
- Emerging growth products now account for 48% of total revenue.
- Investments in long-term growth expected to deliver results in 2026.
- Resilient performance in Japan with 15% revenue growth.
Challenges Ahead
- Global industrial demand remains subdued.
- Book-to-bill ratio slightly below 1, indicating weaker order inflows.
- Revenue declined in key regions including North America and China.
- Operating margin dropped due to lower absorption of manufacturing costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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