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Market Overview

Earnings Outlook For IPG Photonics

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On Tuesday, February 16, IPG Photonics (NASDAQ:IPGP) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

IPG Photonics EPS will likely be near $0.98 while revenue will be around $310.96 million, according to analysts. IPG Photonics reported a profit of $0.91 per share when it published results during the same quarter last year. Sales in that period totaled $306.63 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 7.69% increase in the company's EPS figure. Sales would be up 1.41% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.89 0.60 0.19 0.80
EPS Actual 1.29 0.91 0.68 0.91
Revenue Estimate 304.00 M 282.24 M 236.44 M 287.81 M
Revenue Actual 318.44 M 296.41 M 249.24 M 306.63 M

Stock Performance

Shares of IPG Photonics were trading at $249.73 as of February 11. Over the last 52-week period, shares are up 86.21%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. IPG Photonics is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings