IPG Photonics IPGP unveiled its YLR-AMB dual-beam fiber lasers, which are specifically designed for additive manufacturing applications. These cutting-edge lasers, featuring independent control of core and ring beams, aim to deliver unprecedented precision, productivity and cost efficiency.

The YLR-AMB series includes two models, the YLR-1000/3000-AMB with a 1 kW core and 3 kW ring, as well as the YLR-2000/2000-AMB with 2 kW each for core and ring beams. These lasers optimize heat distribution, enabling faster, high-quality builds and achieving build rates over 324 cm³/h with >99.9% density on titanium alloys like Ti-6Al-4V.

The lasers are designed with a compact, rack-mountable form factor, making them easy to integrate into existing systems while minimizing space requirements. It supports single-mode and multi-mode outputs, with a total power capacity of up to 4 kW. The dual-beam system is effective for complex geometries, making it suitable for aerospace, medical devices and custom tooling applications.

IPGP Underperforms Sector & Industry YTD

IPGP shares have lost 32.3% year to date (YTD), underperforming the broader Zacks Computer & Technology Sector’s growth of 27.8% and the Zacks Lasers Systems and Components industry’s decline of 9.4%.

The decline in IPGP share price can be attributed to its 23% year-over-year revenue decline in the third quarter of 2024, led by reduced demand in industrial and e-mobility markets.

Sales fell sharply across key regions — 20% in North America, 27% in China, 29% in Europe and 8% in Japan, highlighting global demand challenges and regional headwinds impacting the company's performance.

Despite challenges, the company is gaining from its product innovations, partnerships and solid standing in high-power laser systems, positioning itself for long-term success in the expanding global laser technology market.

It has outperformed its industry peers, including Cutera CUTR and Microvision MVIS. Shares of Cutera and Microvision have lost 91.4% and 65.2% YTD, respectively.

Innovations & Acquisitions Aid IPGP’s Prospects

Emerging products like LightWELD are expected to drive the company’s sales. IPG Photonics’ success in the EV battery manufacturing sector is supported by advanced laser welding solutions.

Partnerships with companies like Miller Electric for handheld welding solutions are expected to drive top-line growth.

IPG Photonics' focus on innovation and growth is demonstrated by its recent acquisition of cleanLASER — a move that helps the company capitalize on the expanding laser cleaning market.

IPGP’s Cautious Q4 Outlook

For fourth-quarter 2024, IPG Photonics anticipates sales of $210-$240 million. Earnings are projected between 5 cents and 30 cents per share.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $230.59 million, indicating a year-over-year decrease of 22.15%.

The consensus mark for earnings is pegged at 22 cents a share, down by a couple of pence over the past 30 days. The estimate suggests a year-over-year decline of 75.28%.

IPGP’s Zacks Rank & Stock to Consider

IPG Photonics currently carries a Zacks Rank #3 (Hold).

Amphenol APH is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol’s long-term earnings growth rate is pegged at 16.39%.

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