IPG Photonics Corporation (IPGP) stock soared 11.28% in the pre-market trading session on Tuesday, following the release of its fourth-quarter 2024 financial results and first-quarter 2025 guidance.

The company reported better-than-expected earnings and revenue for the fourth quarter, driven by strong performance in emerging growth products and advanced applications. Despite challenging market conditions, IPG Photonics delivered revenue at the high end of its guidance and improved gross margins.

Moreover, the company provided an optimistic outlook for the first quarter of 2025, expecting revenue between $210 million and $240 million, and adjusted earnings per share in the range of $0.05 to $0.35. While the revenue guidance range falls slightly below analysts' estimates, the company's focus on managing costs, investing in strategic growth initiatives, and strengthening execution has instilled confidence in investors.