IPG Photonics (NASDAQ:IPGP) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

IPG Photonics (NASDAQ:IPGP) issued its quarterly earnings results on Tuesday. The semiconductor company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.04, Briefing.com reports. IPG Photonics had a return on equity of 9.18% and a net margin of 17.00%. The company had revenue of $252.00 million for the quarter, compared to analyst estimates of $255.53 million. During the same quarter last year, the company posted $1.26 EPS. The company’s revenue for the quarter was down 27.4% compared to the same quarter last year. IPG Photonics updated its Q2 guidance to $0.30-0.60 EPS and its Q2 2024 guidance to 0.300-0.600 EPS.

IPG Photonics Stock Down 1.1 %

IPGP traded down $0.95 during midday trading on Wednesday, hitting $83.03. 110,565 shares of the company were exchanged, compared to its average volume of 292,238. The firm has a market capitalization of $3.83 billion, a P/E ratio of 18.12, a P/E/G ratio of 17.53 and a beta of 1.19. IPG Photonics has a 1-year low of $80.33 and a 1-year high of $141.85. The firm’s 50 day moving average price is $87.72 and its 200-day moving average price is $94.15.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Benchmark decreased their price target on IPG Photonics from $116.00 to $106.00 and set a “buy” rating on the stock in a research note on Wednesday. Seaport Res Ptn restated a “buy” rating on shares of IPG Photonics in a research report on Thursday, January 25th. Needham & Company LLC restated a “hold” rating on shares of IPG Photonics in a research report on Wednesday. Stifel Nicolaus reduced their price objective on IPG Photonics from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday, February 14th. Finally, StockNews.com lowered IPG Photonics from a “buy” rating to a “hold” rating in a research report on Saturday, February 17th. One analyst has rated the stock with a sell rating, two have given a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $111.60.

IPG Photonics declared that its Board of Directors has approved a stock buyback program on Tuesday, February 13th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to repurchase up to 7.3% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other news, major shareholder Valentin Gapontsev Trust I sold 10,000 shares of the business’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $85.68, for a total value of $856,800.00. Following the transaction, the insider now directly owns 7,219,599 shares of the company’s stock, valued at approximately $618,575,242.32. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders have sold 29,000 shares of company stock valued at $2,525,140. 33.50% of the stock is currently owned by company insiders.

About IPG Photonics

IPG Photonics Corporation develops, manufactures, and sells various high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications primarily in materials processing worldwide. Its laser products include hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers; and high-power optical fiber delivery cables, fiber couplers, beam switches, chillers, scanners, and other accessories.