IPG Photonics +3.6% following Q2 beat, in-line Q3 guidance

|About: IPG Photonics Corporation (IPGP)|By:, SA News Editor

Q3 guidance is for revenue of $165M-$175M and EPS of $0.77-$0.87 vs. a consensus of $172.6M and $0.86. Q2 book-to-bill "substantially exceeded 1."

Materials processing laser sales (94% of revenue) continue to be healthy as IPG's (IPGP) fiber lasers take more share from traditional industrial lasers; sales +26% Y/Y in Q2 vs. +29% in Q1.

Unit sales of IPG's QCW lasers more than doubled Y/Y.

China and the U.S. saw strong demand in Q2. German automotive sales were weak, but European demand was "otherwise solid."

Gross margin was 53.5%, +20 bps Q/Q and -80 bps Y/Y.

Exc. forex losses, opex +43% Y/Y (above rev. growth) thanks to big increases in G&A and R&D spend.

CC getting underway (webcast).

Q2 results, PR