Does The Street Have IPG Photonics Figured Out?

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IPG Photonics (NAS: IPGP) is expected to report Q2 earnings on July 30. 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 grow 16.7% and EPS will grow 14.7%.

The average estimate for revenue is $161.0 million. On the bottom line, the average EPS estimate is $0.78.


Revenue details
Last quarter, IPG Photonics reported revenue of $141.9 million. GAAP reported sales were 15% higher than the prior-year quarter's $123.2 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 $0.67. GAAP EPS of $0.67 for Q1 were 9.8% higher than the prior-year quarter's $0.61 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 53.3%, 250 basis points worse than the prior-year quarter. Operating margin was 34.7%, 300 basis points worse than the prior-year quarter. Net margin was 24.8%, 50 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $641.2 million. The average EPS estimate is $3.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,480 members out of 1,512 rating the stock outperform, and 32 members rating it underperform. Among 474 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 466 give IPG Photonics a green thumbs-up, and eight 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 $72.38.

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The article Does The Street Have IPG Photonics Figured Out? 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 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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