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IPG Photonics Corporation (IPGP)

  • Thu, Apr. 30, 4:00 PM
    • Though industrial laser maker Coherent (COHR -5.7%) beat FQ2 estimates, it guided on its CC (transcript) for FQ3 revenue of $190M-$210M, mostly below a $209.6M consensus. The company also guided for FY15 (ends Sep. '15) revenue of $820M-$830M, below an $840.9M consensus.
    • Peers IPG Photonics (IPGP -4.1%), Newport (NEWP -5.2%), and Rofin-Sinar (RSTI -2.8%) have joined Coherent in underperforming amid a 1.8% drop for the Nasdaq. Laser component makers II-VI (IIVI -6.2%) and GSI Group (GSIG -4.8%) have also sold off.
    • Coherent partly blamed its guidance on a strong dollar. However, the company also noted "capex investments have been muted despite continued growth in bit and device output due, in part to yield and process enhancements" - capex budget cuts from chip giants Intel and TSMC were highlighted - and that a $10M deal for a consumer electronics packaging laser project fell through when the customer "decided to stick with their current process and reuse existing equipment."
    • FQ2 book-to-bill was still a solid 1.08, and Coheren't backlog of orders expected to ship within 12 months was up 4% Y/Y to $315.3M. Materials processing and instrumentation/OEM component orders were strong, while microelectronics (chip) industry orders were soft.
    • IPG is down 6% since posting mixed Q1 results and solid Q2 guidance on Tuesday morning. II-VII is down 5% since providing an FQ3 beat at the same time.
    | 1 Comment
  • Tue, Apr. 28, 1:09 PM
    • Though missing Q1 revenue estimates (thanks in large part to a strong dollar), IPG Photonics (IPGP +1.2%) is guiding for Q2 revenue of $215M-$225M and EPS of $1.05-$1.15, favorable to a consensus of $218.4M and $1.07 at the midpoints.
    • The Q1 EPS beat was driven by an $8.8M gain on forex transactions. Meanwhile, Y/Y revenue growth would've been 20% (rather than the reported 17%) at last year's average exchange rates. Order flow and book-to-bill are said to "remain at strong levels" in IPG's 3 main geographies. "Strong growth" was seen in the U.S., Europe, and China, and lower sales in Japan and Russia.
    • Materials processing laser sales rose 18% Y/Y, and high-power fiber laser sales 14%. Gross margin was 54.2% vs. 54.9% in Q4 and 52.3% a year ago. Not counting forex transaction gains, GAAP operating expenses rose just 5% Y/Y to $43.6M.
    • Q1 results, PR
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  • Mon, Mar. 30, 3:13 PM
    • Today's notable tech gainers include industrial laser maker IPG Photonics (IPGP +4.3%), cloud classroom software provider 2U (TWOU +5.8%), California solar installer Solar3D (SLTD +10.3%), Korean analog/mixed-signal chipmaker MagnaChip (MX +6.8%), privileged account security software vendor CyberArk (CYBR +5.3%), haptic tech provider Immersion (IMMR +4.6%), and solar power optimizer maker/recent IPO SolarEdge (SEDG +4.8%). The Nasdaq is up 1.1%.
    • There are relatively few major decliners. The group includes Chinese online video platform Youku (YOKU -4.5%), Chinese solar cell/module maker Yingli (YGE -5.6%), authentication hardware/software provider Vasco (VDSI -3%), and IP licensing firm Marathon Patent Group (MARA -8.8%).
    • Solar3D is now up 97% from a March 18 close of $2.57. SolarEdge is up 23% from last week's $18 IPO price. Immersion might be getting a lift from a Barclays report stating Analog Devices will be supplying converter ICs to help enable haptics support on future iPhones/iPads.
    • Youku has fallen to fresh 52-week lows, and is now down 18% since posting Q4 results and disclosing an SEC inquiry on March 19. Marathon is down 11% since reporting last Thursday.
    • Previously covered: BlackBerry, Altera, Ambarella, OTI, Angie's List, You On Demand,, Chinese online real estate
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  • Mon, Mar. 23, 10:45 AM
    • Following a big 2015 rally that led shares to top $100 last week, Stifel has downgraded IPG Photonics (NASDAQ:IPGP) to Hold.
    • With the help of a positive Q4 pre-announcement and strong Q1 guidance, the industrial laser maker's shares remain up 28% YTD. They trade for 22x 2015E EPS; the 2015 revenue growth consensus is at 14%.
  • Fri, Feb. 27, 2:59 PM
    • Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
    • Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
    • Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
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  • Fri, Feb. 20, 9:22 AM
    • Though officially beating Q4 estimates, IPG Photonics' (NASDAQ:IPGP) results were roughly in-line with the outlook provided in its Feb. 9 guidance hike. However, the company has also guided for Q1 revenue of $195M-$205M and EPS of $0.92-$1.02, mostly above a consensus of $195.8M and $0.93.
    • Also: Backlog was up 21% Y/Y to $321M as of the end of 2014. Q4 book-to-bill was above 1.
    • The Q4 performance was driven in large part by 58% and 32% Y/Y respective increases in medium-power and high-power industrial laser sales; the former benefited from demand for fine-processing applications, and the latter from North American auto and global metal-cutting demand.
    • IPG adds "the growth we anticipated in metal-based 3D printing at the beginning of [2014] materialized." Though far from a 3D printing pure-play, the 3D printing market has been viewed as a long-term growth opportunity for IPG.
    • Q4 gross margin was 54.9%, up from 54.6% in Q3 and 49.2% a year ago. Thanks in part to a $2.6M forex gain, GAAP operating expenses rose only 5% Y/Y to $34.3M (compares with 25% revenue growth).
    • IPGP +4.1% premarket to $91.89, making new highs along the way.
    • Q4 results, PR
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  • Fri, Feb. 20, 8:06 AM
    • IPG Photonics (NASDAQ:IPGP): Q4 EPS of $1.07 beats by $0.03.
    • Revenue of $207.40M (+25.0% Y/Y) beats by $2.94M.
    • Shares +4.19% PM.
    • Press Release
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  • Mon, Feb. 9, 9:09 AM
    • IPG Photonics (NASDAQ:IPGP) expects to report Q4 revenue of $207M and EPS of $1.06-$1.07, above prior guidance of $190M-$205M and $0.86-$1.01, as well as a consensus of $197.8M and $0.95. EPS received a $0.03 forex boost.
    • CEO Valentin Gapontsev: "Geographically, we performed well in Asia, North America and Western Europe. In terms of products, growth was primarily driven by high power and medium power lasers and to a lesser extent QCW and pulsed lasers." Medium-power and QCW lasers were strong points in Q3.
    • The pre-announcement comes ahead of this week's Photonics West industry conference. Full Q4 results are due on the morning of Feb. 20.
  • Dec. 2, 2014, 6:20 PM
    • IPG Photonics (NASDAQ:IPGP) and TreeHouse Foods (NYSE:THS) will join the S&P MidCap 400 following the Dec. 9 close. The companies are replacing soon-to-be-acquired Compuware and Conversant.
    • OFG Bancorp (NYSE:OFG) will be taking TreeHouse's place in the S&P SmallCap 600.
    • IPGP +2.9% AH. THS +1.3%. OFG +3%.
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  • Nov. 20, 2014, 2:42 PM
    • Jefferies' Jason North has slashed his 3D Systems (DDD -1.8%) target by $4 to $42, albeit while reiterating Buy. Citing execution concerns caused by the company's recent woes, he now assigns 3D a 2016E EV/sales multiple (3.5x) that's 20% below that of peers vs. a prior 10%.
    • Meanwhile, North suggests 3D printer/platform launches from the likes of H-P, Autodesk (ADSK -0.9%), and IPG Photonics (IPGP +1.7%) pose challenges for established vendors, albeit not immediately. "After speaking to most of them, we think they could grow to become major 3D printing players but see little overall impact for the next two years."
    • North observes Autodesk wants its open-source Spark 3D printing software platform to become an industry standard. However, he sees it mostly being used in low-end devices initially. The CAD software giant's FQ3 report arrives after the bell.
    • IPG, currently a top supplier of lasers for metal 3D printers, is working on a powder-feed printer for creating large parts. North doesn't expect a launch before 2017.
    • 3D printing stocks sold off last month after H-P unveiled its Multi Jet Fusion 3D printing tech; broad availability isn't expected until 2016. At the time, UBS argued 3D Systems is more at risk than Stratasys (SSYS -1.3%), given H-P's process is "somewhat like 3D Systems' Z Corp binder jetting MJM process more than Stratasys’ Polyjet."
  • Oct. 28, 2014, 10:42 AM
    • IPG Photonics (NASDAQ:IPGP) expects Q4 revenue of $190M-$205M and EPS of $0.86-$1.01, favorable at the midpoints to a consensus of $192.4M and $0.90.
    • A $3.6M forex gain was recorded in Q3, helping EPS beat estimates in spite of a revenue miss. Also helping: Gross margin rose 40 bps Q/Q and 70 bps Y/Y to 54.6%. Not counting forex, opex rose 12% Y/Y to $35.1M (compares with 16% revenue growth).
    • Demand for QCW lasers remained strong, rising 122% Y/Y. IPG attributes the growth to "successful penetration of OEMs for turbine blade drilling and, in particular, fine welding applications." High-power lasers +10%; medium-power +45%; low-power +14%; pulsed lasers +11%.
    • 20%+ growth in Europe and China offset weak demand in the U.S. and Japan. Turkey and other parts of Asia also saw strong growth.
    • Q3 results, PR
    | Comment!
  • Apr. 29, 2014, 10:28 AM
    • Though IPG Photonics (IPGP -6.4%) posted in-line Q1 EPS and beat on revenue, it's guiding for Q2 revenue of $173M-$188M and EPS of $0.77-$0.92, largely below a consensus of $188.2M and $0.90.
    • The company blames softness in North American advanced and medical laser orders, and "continued competition" in the Chinese low-power pulsed laser market (it expects new products to improve its Chinese position). Those factors are offsetting strong demand for high-power cutting lasers and other products.
    • Q1 gross margin was 52.3%, +310 bps Q/Q but -100 bps Y/Y. Opex rose 21% Y/Y to $31.5M, thanks in large part to a 45% increase in R&D spend to $12.8M. A $1.4M forex charge was recorded (compares with a $1.6M Q4 charge).
    • Book-to-bill remained above 1. Japanese sales hit a record, and "strong growth" was also seen in Europe, China, and Turkey. But North American sales fell due to lower welding and paint-stripping laser demand.
    • Q1 results, PR
    | 1 Comment
  • Feb. 14, 2014, 12:37 PM
    • 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
    | Comment!
  • Nov. 1, 2013, 9:21 AM
    • Discussing its Q3 EPS (flat Y/Y and $0.03 below consensus), IPG Photonics (IPGP) says the figure "reflects the peak of [its] current investment cycle expanding manufacturing capacity, R&D and sales and marketing."
    • Those investments are set to affect Q4 results as well: The industrial laser vendor is guiding for Q4 revenue of $155M-$170M and EPS of $0.68-$0.82 vs. a consensus of $163.6M and $0.80. Demand is expected to be "seasonally weaker in certain areas."
    • Also hurting EPS: gross margin came in at 53.9%, +40 bps Q/Q but -110 bps Y/Y. R&D spend jumped 48% Y/Y to $11.5M, sales/marketing rose 17% to $6.8M; both growth rates exceeded revenue growth of 10%.
    • Asian sales rose 40% Y/Y thanks to strong Chinese/Turkish demand, but North American and European sales fell. IPG's core materials processing business saw 19% Y/Y sales growth, down from 26% in Q2 and 29% in Q1.
    • No mention in the PR of book-to-bill; in the Q2 report, IPG announced B2B "substantially exceeded 1."
    • COHR -1% in sympathy
    • Q3 results, PR
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  • Nov. 1, 2013, 9:13 AM
    | 1 Comment
  • Sep. 5, 2013, 9:23 AM
    • OpenTable (OPEN) has received a two-notch downgrade to Underweight, and Zillow (Z) a one-notch downgrade to Underweight, by Morgan Stanley. Z -2.5%.
    • Groupon (GRPN) has been upgraded to Overweight by Morgan Stanley. GRPN +5.6%.
    • YY has been upgraded to Outperform by Pac Crest. YY +4%.
    • IPG Photonics (IPGP) has been upgraded to Buy by Noble Financial.
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Company Description
IPG Photonics Corp develops and manufactures broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used for diverse applications in materials processing.