IPG Photonics Corporation (NASDAQ:IPGP) shares are trading lower on Tuesday after reporting first-quarter results.
The company reported adjusted earnings per share of 31 cents, beating the Street view of 21 cents. Quarterly sales of $227.79 million (down 10% year over year) outpaced the analyst consensus estimate of $227.10 million.
Revenues slumped owing to lower sales in materials processing. Changes in foreign exchange rates reduced revenue growth by approximately 2%. Materials processing sales accounted for 86% of total revenue and decreased 14% year-over-year, as a result of lower sales in welding and cutting applications.
Also Read: Bessent Signals Imminent Trade Deals, Dismisses Recession Fears As Stocks Rebound
Operating income in the quarter under review slumped 91% to $1.8 million, while operating margin significantly contracted to 0.8% in the quarter under review, compared with 7.6% in the year-ago period.
Adjusted EBITDA in the quarter fell 19% on a year-over-year basis to $32.7 million.
“While recent tariffs have caused uncertainty related to the timing of shipments and some increased costs in the near term, we are able to take advantage of our global manufacturing footprint and supply chain to mitigate their impact while continuing to invest in the future growth of our business,” said Mark Gitin, CEO.
Gross margin in the quarter under review expanded to 39.4% from 38.7% in the year-ago period.
Outlook: IPG Photonics expects adjusted earnings per share for the second quarter to range between a loss of $0.05 and a profit of $0.25, below the consensus estimate of $0.31.
The company also projects second-quarter revenue between $210 million and $240 million, missing the Street expectation of $242.19 million.
“Our revenue guidance is approximately $15 million lower than it would have been due to potential shipment delays related to tariffs,” the firm said.
IPG Photonics expects the second quarter adjusted gross margin to be between 36% and 38%, including 150 to 200 basis points of impact from tariffs.
IGP Price Action: IPGP shares are trading lower by 12.31% to $55.36 at publication on Tuesday.
Read Next:
Photo: Pavel Kapysh via Shutterstock
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。