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 $257.6 million, down 24.2% year on year. It was a softer 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 24.2% year on year to $228.4 million, a further deceleration from the 13.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 five times over the last two years.
Looking at IPG Photonics’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Lam Research reported revenues up 19.7%, topping estimates by 2.7%. Teradyne traded down 11.1% following the results while Lam Research was up 4.8%.
Read our full analysis of Teradyne’s results here and Lam Research’s results here.
Investors in the semiconductors segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. IPG Photonics is up 3.4% during the same time and is heading into earnings with an average analyst price target of $84.67 (compared to the current share price of $76.82).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
