IPG Photonics (IPGP) Q4 Earnings Report Preview: What To Look For

Adam Hejl /
2024/02/12 2:02 am EST

Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) will be announcing earnings results tomorrow before market hours. Here's what to expect.

Last quarter IPG Photonics reported revenues of $301.4 million, down 13.6% year on year, missing analyst expectations by 4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Is IPG Photonics buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting IPG Photonics's revenue to decline 14.1% year on year to $286.6 million, a further deceleration on the 8.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share.

IPG Photonics Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at IPG Photonics's peers in the semiconductor manufacturing segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. FormFactor delivered top-line growth of 1.3% year on year, beating analyst estimates by 1.7% and Amkor reported revenue decline of 8.1% year on year, exceeding estimates by 2.1%. FormFactor traded down 2.3% on the results, Amkor was down 7.1%.

Read our full analysis of FormFactor's results here and Amkor's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 7.4% over the last month. IPG Photonics is up 3.1% during the same time, and is heading into the earnings with analyst price target of $124.3, compared to share price of $102.75.

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