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IPG Photonics (IPGP) Tops Q2 EPS by 11c, Revenues Beat; Offers 3Q EPS/Revenue Guidance

August 4, 2020 8:03 AM EDT

IPG Photonics (NASDAQ: IPGP) reported Q2 EPS of $0.71, $0.11 better than the analyst estimate of $0.60. Revenue for the quarter came in at $296.41 million versus the consensus estimate of $280.49 million.

Management Comments

"Despite the continued challenges to our business from the COVID-19 pandemic, we delivered second quarter results above our guidance range on better-than-expected performance in China and strength in new products," said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. "Although our visibility is constrained in the current demand environment, we are demonstrating good progress in leading-edge solutions thanks to our technology differentiation and low cost production capabilities. We continue to believe that our strong balance sheet and free cash flow provide us ample flexibility to respond to business disruptions and emerge from the pandemic in a stronger competitive position.".

GUIDANCE:

IPG Photonics sees Q3 2020 EPS of $0.70-$1.00, versus the consensus of $0.80. IPG Photonics sees Q3 2020 revenue of $280-310 million, versus the consensus of $303.26 million.

Business Outlook and Financial Guidance

"Second quarter book to bill was greater than 1.0, with strong bookings growth in China, offset by weaker order trends in other regions. As expected, the pace of order growth in China moderated as the second quarter progressed while we have seen modest improvement in order trends in other regions. However, visibility into a recovery in global demand remains uncertain at this time. We continue to benefit from near-term growth opportunities in ultra-high power cutting, electric vehicle battery processing and systems and devices for the medical industry. We believe the strides we are making in higher power products within our core materials processing business and new solutions will enable us emerge from the pandemic in a stronger competitive position," said Dr. Gapontsev.

For the third quarter of 2020, IPG expects revenue of $280 million to $310 million. The Company expects the third quarter tax rate to be approximately 26%. IPG anticipates delivering earnings per diluted share in the range of $0.70 to $1.00, with 53.0 million basic common shares outstanding and 53.5 million diluted common shares outstanding. Financial guidance provided this quarter is subject to greater risk and uncertainty given the COVID-19 pandemic and its associated impacts to the global business environment, public health requirements and government mandates.

For earnings history and earnings-related data on IPG Photonics (IPGP) click here.



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