Fiber laser manufacturer IPG Photonics (NASDAQ: IPGP) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
IPG Photonics beat analysts’ revenue expectations last quarter, reporting revenues of $274.5 million, up 17.1% year on year. It was a stunning quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Is IPG Photonics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting IPG Photonics’s revenue to grow 12.8% year on year, a reversal from the 9.6% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at IPG Photonics’s peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 87%, beating analysts’ expectations by 5.6%, and FormFactor reported revenues up 32%, in line with consensus estimates. Teradyne traded down 19.4% following the results while FormFactor’s stock price was unchanged.
Read our full analysis of Teradyne’s results here and FormFactor’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 34.9% on average over the last month. IPG Photonics is up 15.4% during the same time and is heading into earnings with an average analyst price target of $144.75 (compared to the current share price of $127.43).
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