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

IPG Photonics (NASDAQ:IPGP) posted its quarterly earnings results on Tuesday. The semiconductor company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.04, Briefing.com reports. IPG Photonics had a net margin of 17.00% and a return on equity of 9.18%. The firm had revenue of $252.00 million during the quarter, compared to analyst estimates of $255.53 million. During the same quarter in the prior year, the business posted $1.26 earnings per share. The company’s quarterly revenue 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 Trading Down 1.3 %

Shares of NASDAQ:IPGP traded down $1.12 during trading on Wednesday, reaching $82.86. 115,989 shares of the stock were exchanged, compared to its average volume of 292,323. IPG Photonics has a 12 month low of $80.33 and a 12 month high of $141.85. The firm has a market cap of $3.82 billion, a PE ratio of 18.12, a PEG ratio of 17.53 and a beta of 1.19. The stock has a 50-day moving average price of $87.72 and a 200-day moving average price of $94.15.

Analysts Set New Price Targets

Several analysts have recently weighed in on IPGP shares. Seaport Res Ptn reaffirmed a “buy” rating on shares of IPG Photonics in a report on Thursday, January 25th. StockNews.com downgraded shares of IPG Photonics from a “buy” rating to a “hold” rating in a research note on Saturday, February 17th. Citigroup cut IPG Photonics from a “neutral” rating to a “sell” rating and cut their price objective for the company from $111.00 to $74.00 in a report on Thursday, February 15th. Needham & Company LLC reaffirmed a “hold” rating on shares of IPG Photonics in a research note on Wednesday. Finally, Stifel Nicolaus dropped their price target on IPG Photonics from $130.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, February 14th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $111.60.

IPG Photonics announced that its Board of Directors has initiated a share repurchase program on Tuesday, February 13th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the semiconductor company to buy up to 7.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at IPG Photonics

In related news, major shareholder Valentin Gapontsev Trust I sold 9,000 shares of the stock in a transaction that occurred on Tuesday, April 23rd. The stock was sold at an average price of $85.86, for a total transaction of $772,740.00. Following the sale, the insider now owns 7,200,599 shares of the company’s stock, valued at $618,243,430.14. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 29,000 shares of company stock worth $2,525,140 over the last quarter. Company insiders own 33.50% of the company’s stock.

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.