Yahoo Finance IPG Photonics (IPGP) to Post Q1 Earnings: What's in the Cards?
IPG Photonics IPGP is slated to release its first-quarter 2024 results on Apr 30.
For the first quarter, the company anticipates sales to be $235-$365 million. Earnings are projected between 30 cents per share and 60 cents per share.
The Zacks Consensus Estimate for earnings is pegged at 48 cents per share, unchanged over the past 30 days. The company reported earnings of $1.26 per share in the year-ago quarter.
The consensus mark for revenues stands at $250.3 million, suggesting a decrease of 27.89% from the year-ago quarter.
IPG Photonics’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 10.05%.
IPG Photonics Corporation Price and EPS Surprise
IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote
Let’s see how things have shaped up for this announcement.
Factors to Note
IPG Photonics has been suffering from lower materials processing sales, primarily due to weakness in cutting and marking applications.
The Zacks Consensus Estimate for Materials Processing revenues is pegged at $222 million, indicating a decline of 29.1% year over year.
Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is impacting industrial demand and capital investments that does not bode well for IPG Photonics.
In the fourth quarter of 2023, revenues from China declined 25% year over year. The Zacks Consensus Estimate for China revenues is pegged at $75 million, suggesting a year-over-year decline of 25.7%.
However, IPG Photonics is expected to have benefited from strong demand for the handheld welder, LightWELD. Robust demand for cleaning and solar cell manufacturing solutions due to increasing investment in renewable energy and eco-friendly solutions is expected to have benefited top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
IPG Photonics has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks is set to announce first-quarter 2024 results on May 7. ANET’s shares are up 12.5% year to date.
Advanced Micro Devices AMD has an Earnings ESP of +28.33% and a Zacks Rank #2.
AMD is set to announce first-quarter 2024 results on Apr 30. AMD’s shares have gained 4.3% in the year-to-date period.
Silicon Motion Technology SIMO has an Earnings ESP of +5.96% and a Zacks Rank #2.
Silicon Motion Technology is set to announce first-quarter fiscal 2024 results on May 2. SIMO’s shares have gained 19.1% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
IPG Photonics Corporation (IPGP) : Free Stock Analysis Report
