IPG Photonics (IPGP +3%) is guiding for Q1 revenue of $160M-$175M and EPS of $0.69-$0.83, in-line with a consensus of $165.8M and $0.78.
The industrial laser maker beat Q4 revenue estimates on the back of a 22% Y/Y increase in laser sales for materials processing applications (up from 19% in Q3), and a 24% increase in high-power laser sales in particular.
EPS missed thanks in part to a 260 bps drop in gross margin to 49.2%. IPG says it took a $5.9M inventory charge during the quarter, as well as a $1.6M forex charge. At the same time, a lower tax rate provided a $0.03 EPS boost.
Opex rose 17% Y/Y, slightly exceeding revenue growth of 14%. Q4 book-to-bill was above 1, and IPG ended the year with a backlog of $265M, +31% Y/Y.
Q4 results, PR