Overview

* IPG Photonics ( IPGP ) Q3 revenue up 8% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 rises 9% yr/yr

* Gross margin improved to 39.5% due to lower expenses

Outlook

* IPG Photonics ( IPGP ) expects Q4 revenue between $230 mln and $260 mln

* Company anticipates Q4 adjusted EPS of $0.05 to $0.35

* IPG Photonics ( IPGP ) forecasts Q4 adjusted EBITDA of $21 mln to $38 mln

Result Drivers

* BUSINESS WINS - Revenue growth driven by business wins and strategic initiatives, as stated by CEO Dr. Mark Gitin

* MATERIALS PROCESSING - Growth in materials processing sales, particularly in welding and additive manufacturing, contributed to revenue increase

* GROSS MARGIN IMPROVEMENT - Gross margin improved due to decreased unabsorbed expenses and lower inventory provisions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $250.80 $240.20

Revenue mln mln (7

Analysts

)

Q3 EPS $0.18

Q3 Net $7.50

Income mln

Q3 Gross 39.50%

Margin

Q3 $7.90

Operatin mln

g Income

Q3 3.10%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy."

* Wall Street's median 12-month price target for IPG Photonics Corp ( IPGP ) is $85.50, about 0.5% below its November 3 closing price of $85.90

* The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)