IPG Photonics Corp. (IPGP) Wednesday reported higher first-quarter profit, as the fiber-laser maker benefited from a fifteen percent growth in revenues, partly offset by lower margins. However, quarterly earnings fell short of Wall Street estimates, as did revenues.
Moving forward, IPG detailed its earnings and revenue outlook for the second quarter. The company's stock dropped eight percent in morning trade on the Nasdaq, following the announcement of results.
IPG manufactures fiber lasers, fiber amplifiers, and diode lasers.
The Oxford, Massachusetts-based company reported quarterly net income of $35 million or $0.67 per share, compared to $30 million or $0.61 a share last year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter rose 15 percent to $142 million from $123 million in the prior year. Analysts on consensus estimated revenues of $150.34 million.
"The fundamentals that drive our business remain intact with strong order flow and sequentially improving margins. We are continuing to develop new industry-leading products and applications," said CEO Valentin Gapontsev.
Gross margin for the quarter was lower at 53.3 percent, compared to 55.8 percent a year ago, and operating margin slid to 35 percent from 36.7 percent.
For the second quarter, IPG expects earnings of $0.72 to $0.82 per share on revenues of $155 million to $165 million. Analysts currently estimate earnings of $0.78 per share on revenues of $162.71 million
IPG stock is trading at $58.50, down $5.07 or 7.98%, on a volume of 1.47 million shares.
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