IPG Photonics (IPGP) Reports Q3 EPS Of $0.66, Revenue Beats, Offers Guidance

IPG Photonics (NASDAQ: IPGP) reported Q3 EPS of $0.66, may not compare to the analyst estimate of $0.89. Revenue for the quarter came in at $318 million versus the consensus estimate of $304 million.

• Earnings per Diluted Share of $0.66 Reduced by $0.63 due to Goodwill Impairment Charge

GUIDANCE:

IPG Photonics sees Q4 2020 EPS of $0.75-$1.05, versus the consensus of $0.89. IPG Photonics sees Q4 2020 revenue of $290-320 million, versus the consensus of $304 million.

• "Bookings growth in North America and Europe was strong when compared sequentially with the second quarter. In North America, we had record bookings aided by several orders for advanced applications. While total orders in China for the third quarter were lower, China continues to have a significant backlog given the exceptional level of orders booked in the first half of the year. In total, third quarter book-to-bill was slightly below 1. Overall, it was notable that order bookings improved markedly during September.
• “While the pandemic represents considerable macroeconomic uncertainty for the months ahead, we have continued to demonstrate our ability to execute even in these challenging times. Further, our strong balance sheet and free cash flow provide us ample flexibility to respond to business disruptions and maintain our leading competitive position. We continue to benefit from near-term growth opportunities in ultra-high power cutting, electric vehicle battery processing, medical procedures and advanced applications. We believe the strides we are making in higher power products within our core materials processing business and new solutions will enable us to emerge from the current downturn in a stronger competitive position," concluded Dr. Gapontsev.
• For the fourth quarter of 2020, IPG expects revenue of $290 to $320 million. The Company expects the fourth quarter tax rate to be approximately 25%. IPG anticipates delivering earnings per diluted share in the range of $0.75 to $1.05, with 53.1 million basic common shares outstanding and 53.7 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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