IPG Photonics (IPGP) Q4 Earnings: What To Expect

Petr Huřťák /
2023/02/13 4:12 am EST

Fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) will be reporting earnings tomorrow morning. Here's what to look for.

Last quarter IPG Photonics reported revenues of $349 million, down 7.95% year on year, missing analyst expectations by 4.48%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.

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 12.8% year on year to $317.8 million, a deceleration on the 8.27% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 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 twice 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. Kulicke and Soffa's revenues decreased 61.8% year on year, missing analyst estimates by 0.15% and FormFactor reported revenue decline of 19% year on year, exceeding estimates by 6.89%. Kulicke and Soffa traded up 1.19% on the results, FormFactor was up 1.97%. Read our full analysis of Kulicke and Soffa's results here and FormFactor's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 6.91% over the last month. IPG Photonics is up 0.52% during the same time, and is heading into the earnings with analyst price target of $109.43, compared to share price of $109.45.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.