IPG Photonics Q3 revenue beats estimates, margins improve

IPG Photonics

04/11/2025 13:06

Overview

IPG Photonics Q3 revenue up 8% yr/yr, beating analyst expectations

Adjusted EPS for Q3 rises 9% yr/yr

Gross margin improved to 39.5% due to lower expenses

Outlook

IPG Photonics expects Q4 revenue between $230 mln and $260 mln

Company anticipates Q4 adjusted EPS of $0.05 to $0.35

IPG Photonics forecasts Q4 adjusted EBITDA of $21 mln to $38 mln

Result Drivers

BUSINESS WINS - Revenue growth driven by business wins and strategic initiatives, as stated by CEO Dr. Mark Gitin

MATERIALS PROCESSING - Growth in materials processing sales, particularly in welding and additive manufacturing, contributed to revenue increase

GROSS MARGIN IMPROVEMENT - Gross margin improved due to decreased unabsorbed expenses and lower inventory provisions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$250.80 mln
$240.20 mln (7 Analysts)
Q3 EPS
$0.18
Q3 Net Income
$7.50 mln
Q3 Gross Margin
39.50%
Q3 Operating Income
$7.90 mln
Q3 Operating Margin
3.10%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the electronic equipment & parts peer group is "buy."

Wall Street's median 12-month price target for IPG Photonics Corp is $85.50, about 0.5% below its November 3 closing price of $85.90

The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release: ID:nGNX9PPzL

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)