- IPG Photonics Corp (NASDAQ: IPGP) reported second-quarter FY22 revenue growth of 1% year-on-year to $377 million, beating the consensus of $375.33 million.
- Materials processing sales accounted for 91% of total revenue and decreased 1% Y/Y with higher sales in welding and cleaning applications.
- Sales into other applications increased 29% Y/Y, driven by strength in medical.
- Emerging growth product sales were 40% of total revenue.
- The gross margin contracted by 290 bps to 45.7%. The operating margin shrunk by 580 bps to 19%.
- EPS of $1.10 missed the consensus of $1.14.
- It held $1.23 billion in cash and equivalents.
- "Strong sales in North America and Japan drove our revenue growth as we focus on opportunities that diversify our revenue across key geographies and applications, including e-mobility and medical," CEO Dr. Eugene Scherbakov said.
- "While the operating environment is uncertain, we believe that fiber laser adoption will continue to drive demand across many applications and geographies and will benefit from global trends including increasing automation, e-mobility, renewable energy and energy efficiency as energy costs rise globally," concluded Scherbakov.
- Outlook: IPG expects Q3 revenue of $350 million- $380 million, below the consensus of $381.8 million. It expects EPS of $1.00 - $1.30, versus the consensus of $1.18.
- Price Action: IPGP shares traded lower by 2.87% at $104.57 on the last check Tuesday.
Read at Benzinga