What To Expect From IPG Photonics's (IPGP) Q2 Earnings

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

IPG Photonics met analysts' revenue expectations last quarter, reporting revenues of $252 million, down 27.4% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

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

This quarter, analysts are expecting IPG Photonics's revenue to decline 24% year on year to $258.5 million, a further deceleration from the 9.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IPG Photonics has missed Wall Street's revenue estimates four times over the last two years.

Looking at IPG Photonics's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 4.1%, and KLA Corporation reported revenues up 9.1%, topping estimates by 2.2%. Teradyne traded down 13.2% following the results while KLA Corporation's stock price was unchanged.

Read our full analysis of Teradyne's results here and KLA Corporation's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. IPG Photonics is up 3.9% during the same time and is heading into earnings with an average analyst price target of $100.9 (compared to the current share price of $86.59).

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