IPG Photonics Corporation (NASDAQ:IPGP) shares moved lower on Tuesday despite the company reporting better-than-expected quarterly results.
The laser technology provider faced pressure due to margin contraction, and a softer near-term outlook weighed on investor sentiment.
Quarterly Details
The company reported first-quarter adjusted earnings per share of 29 cents, beating the analyst consensus estimate of 27 cents. Quarterly sales of $265.497 million (+17% year over year) outpaced the Street view of $256.935 million.
Industrial Solutions jumped 21% to $227.590 million, while advanced solutions fell 5% to $37.907 million.
Emerging growth products accounted for 53% of total revenue, consistent with the prior quarter. By region, sales increased 14% in Asia, 27% in North America, and 4% in Europe on a year-over-year basis.
Gross margin in the quarter under review contracted to 37.5% from 39.4% a year ago.
Adjusted EBITDA jumped 8% to $35.2 million from $32.7 million a year ago.
“Our book-to-bill was once again firmly above one in the first quarter, reflecting robust demand for our solutions despite elevated macroeconomic uncertainty,” said CEO Mark Gitin.
IPG Photonics Corporation said it has entered into an agreement with TRUMPF Laser- und Systemtechnik SE to resolve and dismiss all patent litigation worldwide between the parties.
The company noted that the agreement settles ongoing disputes and removes legal overhang across global jurisdictions.
IPG Photonics exited the quarter with cash and equivalents worth $480.76 million.
Outlook
IPG Photonics said it expects second-quarter adjusted earnings per share of 25 cents to 55 cents, compared with the 38 cents analyst estimate.
The company also forecast quarterly sales of $260.0 million to $290.0 million, versus the $275.753 million consensus estimate.
IPGP Price Action: IPG Photonics shares were down 27.48% at $88.71 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by Pavel Kapysh via Shutterstock
Recent Comments