IPG Photonics Tops Q1 Aided By Robust Demand For EV Applications - IPG Photonics (NASDAQ:IPGP)

IPG Photonics Corp (NASDAQ:IPGP) reported first-quarter FY22 revenue growth of 7% year-on-year to $369.98 million, beating the consensus of $334.79 million.
Materials processing sales accounted for 92% of total revenue and increased 7% Y/Y with higher sales in welding, marking, 3D printing, and cleaning applications.
Sales into Other applications increased 9% Y/Y, driven by the medical, advanced applications, and telecom strength.
Emerging growth product sales were 36% of total revenue.
The gross margin contracted by 110 bps to 46.4%. The operating margin shrunk by 50 bps to 25.2%.
EPS of $1.31 beat the consensus of $0.98.
It held $1.42 billion in cash and equivalents.
"We are pleased to report another solid quarter with growth driven by higher demand across many diverse applications in Europe, North America, and Japan. Increased laser welding adoption, primarily in electric vehicle manufacturing, drove record welding revenue for IPG this quarter," CEO Dr. Eugene Scherbakov said.
"First quarter book-to-bill was greater than one, and while bookings were at a record level driven by strong demand for electric vehicle battery manufacturing, handheld welding, and medical applications, we received several orders that we expect to ship after the second quarter."
Outlook: IPG expects Q2 revenue of $355 million- $385 million, versus the consensus of $363 million. It expects Q2 EPS of $0.95 - $1.25, versus the consensus of $1.15.
Price Action: IPGP shares closed higher by 4.94% at $99.15 on Monday.

IPGPIPG Photonics Corp

$106.35-%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.