Why IPG Photonics Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of IPG Photonics have gotten crushed today, down by as much as 14% after the company reported earnings.

So what: Revenue in the fourth quarter was $145 million, which translated into earnings per share of $0.67. Both figures missed analyst forecasts, which called for sales of $146.1 million and earnings per share of $0.72. CEO Dr. Valentin Gapontsev said the company did well in North America and Asia.

Now what: Guidance was mostly in line with expectations, with first-quarter sales expected in the range of $145 million to $155 million. IPG should generate earnings per share of $0.65 to $0.75 in the current quarter. The consensus estimates are perched at $145.8 million up top and $0.72 per share down below. First-quarter results are typically down seasonally, but IPG expects to post growth this quarter. The sell-off seems extreme relative to the miss, and investors could be looking at a buying opportunity right now.

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The article Why IPG Photonics Shares Got Crushed originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends IPG Photonics. The Motley Fool owns shares of 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.

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