IPG Photonics Forecasts Deeper Revenue Decline in Q1
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Shares of IPG Photonics dropped on Tuesday after the company announced that it expects a larger decline in revenue for the first quarter than previously anticipated. This comes after the company reported an earnings miss in the latest quarter.
At 1:01 p.m. ET, IPG Photonics shares were down 13.4% to $89.76. Since the beginning of the year, the stock has already experienced a 17% decline. The manufacturer of fiber lasers forecasts first-quarter revenue of $235 million to $265 million, significantly lower than the reported revenue of $347.2 million for the same period last year. Analysts polled by FactSet had initially expected revenue of $301.7 million.
Chief Executive Eugene Scherbakov expressed concerns about the company's visibility and the challenging macroeconomic conditions and global industrial demand as they enter 2024. However, he did not provide any further details.
IPG Photonics reported a decline in quarterly revenue of 10%, amounting to $298.9 million. Despite this, the company managed to swing to a profit of $41.4 million, or 89 cents a share, compared with a loss of $92.9 million, or $1.91 a share, in the same period the previous year. Unfortunately, this fell short of analysts' expectations of higher earnings per share of 95 cents.
Overall, IPG Photonics continues to face challenges due to soft industrial demand in various regions and lower sales in e-mobility applications specifically in China.
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