Can IPG Photonics Beat These Numbers?

Before you go, we thought you'd like these...
Before you go close icon

IPG Photonics (NAS: IPGP) is expected to report Q2 earnings on July 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict IPG Photonics's revenues will expand 10.9% and EPS will improve 4.8%.

The average estimate for revenue is $135.2 million. On the bottom line, the average EPS estimate is $0.66.


Revenue details
Last quarter, IPG Photonics booked revenue of $123.2 million. GAAP reported sales were 23% higher than the prior-year quarter's $100.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.61. GAAP EPS of $0.61 for Q1 were 30% higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 55.8%, 210 basis points better than the prior-year quarter. Operating margin was 37.7%, 290 basis points better than the prior-year quarter. Net margin was 24.3%, 120 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $557.3 million. The average EPS estimate is $2.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,433 members out of 1,464 rating the stock outperform, and 31 members rating it underperform. Among 413 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 404 give IPG Photonics a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IPG Photonics is outperform, with an average price target of $64.80.

Over the decades, small-cap stocks, like IPG Photonics have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

The article Can IPG Photonics Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of IPG Photonics. Motley Fool newsletter services recommend IPG Photonics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners