IPG Photonics (NASDAQ:IPGP) Updates Q2 Earnings Guidance

IPG Photonics (NASDAQ:IPGP) issued an update on its second quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.30-0.60 for the period, compared to the consensus earnings per share estimate of $0.68. The company issued revenue guidance of $240-270 million, compared to the consensus revenue estimate of $273.45 million. IPG Photonics also updated its Q2 2024 guidance to 0.300-0.600 EPS.

IPG Photonics Stock Performance

Shares of IPGP stock traded down $1.97 during midday trading on Tuesday, hitting $86.61. 254,859 shares of the company were exchanged, compared to its average volume of 290,148. The firm has a market capitalization of $3.99 billion, a P/E ratio of 18.06, a PEG ratio of 17.53 and a beta of 1.19. The firm’s 50 day moving average price is $87.77 and its two-hundred day moving average price is $94.21. IPG Photonics has a 52 week low of $80.33 and a 52 week high of $141.85.

IPG Photonics (NASDAQ:IPGP) last announced its earnings results on Tuesday, February 13th. The semiconductor company reported $0.89 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.06). The company had revenue of $298.89 million for the quarter, compared to the consensus estimate of $287.03 million. IPG Photonics had a return on equity of 9.18% and a net margin of 17.00%. The business’s quarterly revenue was down 10.4% on a year-over-year basis. During the same period in the previous year, the firm posted ($1.91) EPS. Analysts expect that IPG Photonics will post 3.23 EPS for the current year.

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

Analysts Set New Price Targets

IPGP has been the subject of several research analyst reports. Citigroup downgraded shares of IPG Photonics from a neutral rating to a sell rating and reduced their target price for the stock from $111.00 to $74.00 in a report on Thursday, February 15th. StockNews.com cut shares of IPG Photonics from a buy rating to a hold rating in a research note on Saturday, February 17th. Stifel Nicolaus dropped their price objective on shares of IPG Photonics from $130.00 to $115.00 and set a buy rating for the company in a research note on Wednesday, February 14th. Finally, Seaport Res Ptn reiterated a buy rating on shares of IPG Photonics in a research note on Thursday, January 25th. One research analyst has rated the stock with a sell rating, one has given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of Moderate Buy and a consensus target price of $117.20.

Insiders Place Their Bets

In other news, major shareholder Valentin Gapontsev Trust I sold 9,000 shares of the business’s stock in a transaction that occurred on Tuesday, April 23rd. The shares were sold at an average price of $85.86, for a total value of $772,740.00. Following the completion of the transaction, the insider now directly owns 7,200,599 shares in the company, valued at approximately $618,243,430.14. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders sold 29,000 shares of company stock worth $2,525,140 in the last quarter. 33.50% of the stock is currently owned by corporate 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.