Core Insights - IPG Photonics reported revenue of $227.79 million for Q1 2025, a year-over-year decline of 9.6%, with EPS of $0.31 compared to $0.52 a year ago, indicating a significant drop in profitability [1] - The revenue exceeded the Zacks Consensus Estimate of $221.18 million by 2.99%, while the EPS surpassed the consensus estimate of $0.21 by 47.62% [1] Revenue Performance by Product - High-Power Continuous Wave (CW) Lasers generated $69.42 million, falling short of the $74.95 million estimate, representing a year-over-year decline of 23.6% [4] - Medium-Power CW Lasers saw sales of $24.40 million, exceeding the $14.47 million estimate, marking a year-over-year increase of 50.5% [4] - Other Revenue, including Amplifiers, Service, Parts, Accessories, and Change in Deferred Revenue, totaled $53.37 million, below the $57.10 million estimate, reflecting a 6.2% decline year-over-year [4] - Quasi-Continuous Wave (QCW) Lasers reported $10.89 million, slightly below the $11.41 million estimate, with a year-over-year decrease of 31% [4] - Laser and Non-Laser Systems achieved $33.05 million, slightly above the $32.84 million estimate, showing an 11.9% decline year-over-year [4] - Pulsed Lasers generated $36.66 million, surpassing the $32.83 million estimate, with a year-over-year increase of 5.3% [4] Stock Performance - IPG shares returned +10.5% over the past month, closely aligning with the Zacks S&P 500 composite's +10.6% change, indicating stable performance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's unaudited interim financial statements and management's discussion and analysis for the period ended March 31, 2025 [Unaudited Interim Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Interim%20Financial%20Statements) This section presents the unaudited interim financial statements for Q1 2025, revealing a significant year-over-year decline in revenue, operating income, and net income [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2025, shows a slight increase in total assets driven by short-term investments, while total liabilities decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,443,387 | $1,430,995 | | Cash and cash equivalents | $363,046 | $620,040 | | Short-term investments | $563,832 | $310,152 | | **Total Assets** | **$2,317,348** | **$2,289,264** | | **Total Current Liabilities** | $197,034 | $205,019 | | **Total Liabilities** | **$256,906** | **$264,793** | | **Total Equity** | **$2,060,442** | **$2,024,471** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a significant decline in profitability, with net sales decreasing and a sharp drop in operating and net income Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $227,793 | $252,009 | | Gross profit | $89,812 | $97,536 | | Operating income | $1,827 | $19,100 | | Net income | $3,758 | $24,099 | | Diluted EPS | $0.09 | $0.52 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 significantly increased year-over-year, primarily due to a positive foreign currency translation adjustment offsetting lower net income Q1 2025 vs. Q1 2024 Comprehensive Income (in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $3,758 | $24,099 | | Foreign currency translation adjustments | $27,129 | $(17,728) | | **Comprehensive Income** | **$30,887** | **$6,371** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operating activities decreased significantly in Q1 2025, with substantial cash used in investing activities and lower cash used in financing activities Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,445 | $54,596 | | Net cash (used in) provided by investing activities | $(274,386) | $23,736 | | Net cash used in financing activities | $(5,670) | $(90,774) | | **Net decrease in cash and cash equivalents** | **$(256,994)** | **$(18,222)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed financial disclosures, including revenue disaggregation, segment information, effective tax rate changes, and credit facility updates Revenue by Geography (in thousands) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | North America | $56,372 | $63,964 | | Europe | $56,869 | $79,516 | | Asia | $112,696 | $104,406 | | Rest of World | $1,856 | $4,123 | | **Total** | **$227,793** | **$252,009** | - The **effective** tax rate increased to **64.6%** for Q1 2025, compared to **28.3%** for Q1 2024. The increase was driven by lower pre-tax income and a **$4.6 million** discrete tax detriment related to equity-based compensation[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The company operates as a single reportable segment, with the Chief Operating Decision Maker (CODM) assessing performance based on the enterprise's consolidated net income[56](index=56&type=chunk) - On April 4, 2025, the company amended its U.S. revolving line of credit agreement to extend the term to June 30, 2025, and is in the process of negotiating a new credit facility[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the year-over-year decrease in net sales and net income, highlighting operational adjustments and the company's liquidity position Q1 2025 vs. Q1 2024 Results Summary | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $227.8M | $252.0M | (9.6)% | | Materials Processing Sales | $195.7M | $226.4M | (13.5)% | | Gross Margin | 39.4% | 38.7% | +0.7 p.p. | | Net Income | $3.8M | $24.1M | (84.2)% | - The company has expanded manufacturing in Germany, the U.S., and Italy, and added capacity in Poland in response to the Russia-Ukraine conflict and sanctions impacting its Belarusian operations[62](index=62&type=chunk)[66](index=66&type=chunk) - Cash provided by operating activities decreased by **$41.2 million** to **$13.4 million**, primarily due to an increase in cash used by working capital and lower net income[110](index=110&type=chunk) - The company maintains a **strong liquidity position** with **$363.0 million** in cash and cash equivalents, **$563.8 million** in short-term investments, and **$78.4 million** in unused credit lines as of March 31, 2025[105](index=105&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate and foreign exchange rate risks, with foreign exchange risk being more significant due to international operations - The company's main market risks are interest rate risk and foreign exchange rate risk[117](index=117&type=chunk) - A hypothetical **5%** change in the USD/EUR exchange rate would result in a foreign exchange gain/loss of approximately **$1.6-$1.7 million**[121](index=121&type=chunk) - A hypothetical **5%** change in the USD/CNY exchange rate would result in a foreign exchange gain/loss of approximately **$1.1 million**[121](index=121&type=chunk) - As of March 31, 2025, the company holds **no foreign currency derivative instruments**[123](index=123&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) The company concluded its disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures are effective** as of March 31, 2025[124](index=124&type=chunk) - **No material changes to internal control over financial reporting** occurred during the first quarter of 2025[125](index=125&type=chunk) [Part II. Other Information](index=28&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, updated risk factors, equity security sales, and other relevant corporate information [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any ongoing legal proceedings expected to materially affect its consolidated financial statements - The company is aware of **no ongoing legal proceedings** that management estimates could have a material effect on its Condensed Consolidated Financial Statements[43](index=43&type=chunk)[126](index=126&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing the negative impact of uncertain economic conditions and new tariff policies - An updated risk factor emphasizes the negative impact of uncertain economic conditions, noting that sales to China accounted for **25%** of net sales in 2024[128](index=128&type=chunk) - The company highlights risks from new U.S. tariff policies and potential retaliatory actions, which could increase costs and reduce sales[128](index=128&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no sales of unregistered securities in Q1 2025, with shares withheld for tax liabilities related to restricted stock awards - There were **no sales of unregistered securities** for the three months ended March 31, 2025[129](index=129&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Public Plan | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | N/A | 0 | $50,000 | | Feb 2025 | 0 | N/A | 0 | $50,000 | | Mar 2025 | 99,255 (1) | $58.19 | 0 | $50,000 | | **Total** | **99,255** | **$58.19** | **0** | **$50,000** | - (1) The **99,255 shares** purchased were withheld to cover tax liabilities upon vesting of restricted stock awards and were not part of the publicly announced repurchase program[135](index=135&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) This section discloses changes in Rule 10b5-1 trading plans for a director and a senior vice president - On March 7, 2025, Director Eric Meurice adopted a Rule 10b5-1 trading arrangement for the potential sale of up to **3,002 shares**[136](index=136&type=chunk) - On March 17, 2025, SVP, General Counsel and Corporate Secretary Angelo Lopresti terminated his Rule 10b5-1 trading arrangement[136](index=136&type=chunk)

Core Viewpoint - IPG Photonics reported mixed financial results for Q1 2025, with adjusted earnings beating estimates but showing a significant year-over-year decline, while revenues also fell but exceeded consensus expectations [1]. Financial Performance - Adjusted earnings for Q1 2025 were 31 cents per share, surpassing the Zacks Consensus Estimate by 47.62%, but down 38% year over year [1]. - Revenues totaled $227.8 million, a decline of 10% year over year, yet beating the consensus mark by 2.99% [1]. - The revenue decline was primarily attributed to lower sales in materials processing, which constitutes 86% of total revenues, falling 14% year over year [2]. Segment Performance - Sales in materials processing decreased due to lower demand in welding and cutting applications [2]. - Revenues from other applications increased by 25% year over year, driven by higher sales in medical and advanced applications [2]. - Regional sales showed a 12% drop in North America and a 28% decline in Europe, while Asia experienced an 8% increase [2]. Gross Margin and Cash Flow - The gross margin for Q1 2025 was reported at 39.4%, an increase of 70 basis points year over year, attributed to lower inventory provisions and reduced unabsorbed expenses [3]. - As of March 31, 2025, the company had $926.9 million in cash and cash equivalents, generating $13 million in cash from operations while spending $25 million on capital expenditures during the quarter [4]. Guidance - For Q2 2025, IPG Photonics anticipates sales between $210 million and $240 million, factoring in a $15 million negative impact from shipment delays due to higher tariffs [5]. - The company expects adjusted gross margin for Q2 2025 to be between 36% and 38%, with a negative impact of 150 to 200 basis points from tariffs, and operating expenses projected at $86 to $88 million [5]. - The anticipated loss for Q2 2025 is between 5 cents per share and earnings of 25 cents per share [6].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $228 million, down 10% year-over-year, but above the midpoint of guidance, reflecting stabilization in business conditions [17][6] - GAAP gross margin increased to 39.4%, up 70 basis points year-over-year, while adjusted gross margin was 40%, exceeding guidance [18] - GAAP net income was $4 million, or $0.09 per diluted share, with adjusted earnings per diluted share at $0.31, also above guidance [20] Business Line Data and Key Metrics Changes - Revenue from materials processing decreased 14% year-over-year, primarily due to lower sales in cutting and welding, but was partially offset by growth in additive manufacturing and micromachining [18] - Medical and advanced applications revenue increased by 25%, driven by higher sales in these segments [18] - Emerging growth products accounted for over 50% of sales, indicating a shift towards newer applications [21] Market Data and Key Metrics Changes - North America sales decreased 7% sequentially and 12% year-over-year, with medical revenue fluctuating but expected to be strong in Q2 [21] - Europe saw an 11% sequential decline and a 28% year-over-year decline, with lower cutting and welding revenue offsetting gains from the Clean Laser acquisition [22] - Asia experienced a 5% sequential increase and an 8% year-over-year increase, benefiting from stronger sales in additive manufacturing and medical applications [22] Company Strategy and Development Direction - The company is focused on long-term growth in medical, micromachining, and advanced applications, targeting a total addressable market of $5 billion [10] - Continued investment in R&D and strategic partnerships, such as with Axonobel, to enhance product offerings and market position [13][46] - The company is adapting to global trade dynamics by optimizing manufacturing and supply chain flexibility to mitigate tariff impacts [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of demand recovery and stabilization in key markets, despite ongoing tariff-related uncertainties [15][11] - The company is confident in its ability to navigate the current environment while focusing on significant long-term opportunities [15] - Management highlighted the importance of maintaining strong customer relationships and the value of IPG's technology in driving future growth [12][13] Other Important Information - The company ended the quarter with $927 million in cash and no debt, providing financial flexibility for strategic initiatives [22][14] - Anticipated revenue for Q2 2025 is between $210 million and $240 million, reflecting potential shipment delays due to tariffs [23] Q&A Session Summary Question: Can you elaborate on the strength in end markets, particularly in China? - Management noted strong bookings growth in China, particularly in e-mobility and micromachining, with a book-to-bill ratio above 1 [28][30] Question: What are the reasons for the near-term delays in orders? - Delays are attributed to the need to shift manufacturing to optimize costs and address tariff issues, with expectations to fulfill most orders by Q3 [34][36] Question: What is the expected contribution from the partnership with Axonobel? - The partnership aims to replace traditional powder coating processes with more efficient laser technology, with potential for significant long-term impact [45][46] Question: How is the company addressing tariff impacts on gross margins? - Management indicated that the current tariff rates are affecting costs, but efforts to qualify new suppliers and optimize manufacturing are expected to mitigate these impacts over time [56][57] Question: What is the competitive landscape regarding pricing and low-cost suppliers? - Management acknowledged price competition in the cutting market in China but emphasized strong differentiation in other key areas, allowing for strategic pricing adjustments if necessary [60][61]

Core Viewpoint - IPG Photonics reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.52 per share a year ago, indicating a 47.62% earnings surprise [1][2] Financial Performance - The company achieved revenues of $227.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.99%, although this represents a decline from $252.01 million in the same quarter last year [2] - Over the last four quarters, IPG has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] Stock Performance - IPG shares have declined approximately 13.2% since the beginning of the year, compared to a 3.9% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $235.3 million, and for the current fiscal year, it is $1.36 on revenues of $953.88 million [7] Industry Outlook - The Lasers Systems and Components industry, to which IPG belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $228 million, down 10% year-over-year, primarily due to lower materials processing revenue and the divestiture of Russian operations, but offset by growth in medical and advanced applications [15][16] - GAAP gross margin increased to 39.4%, up 70 basis points year-over-year, while adjusted gross margin was 40%, above the top end of guidance [16][18] - GAAP net income was $4 million, or $0.09 per diluted share, with adjusted earnings per diluted share at $0.31, also above guidance [19] Business Line Data and Key Metrics Changes - Revenue from materials processing decreased 14% year-over-year, mainly due to lower sales in cutting and welding, but was partially offset by higher revenue in additive manufacturing and micromachining [16] - Medical and advanced applications revenue increased by 25%, driven by higher sales in these segments [16] - Emerging growth products accounted for over 50% of sales, indicating a shift towards newer applications [20][21] Market Data and Key Metrics Changes - North America sales decreased 7% sequentially and 12% year-over-year, with medical revenue fluctuating but expected to be strong in Q2 [20] - Europe saw an 11% sequential decline and a 28% year-over-year decline, with lower cutting and welding revenue offsetting gains from the Clean Laser acquisition [21] - Asia experienced a 5% sequential increase and an 8% year-over-year increase, benefiting from stronger sales in additive manufacturing and medical applications [21] Company Strategy and Development Direction - The company is focused on long-term growth in medical, micromachining, and advanced applications, with a target of $5 billion in total addressable market (TAM) [7][12] - Continued investment in R&D and strategic acquisitions, such as Clean Laser, is aimed at enhancing market position and technology portfolio [13][14] - The company is adapting to global trade dynamics by optimizing manufacturing and supply chain to mitigate tariff impacts [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in demand and improving trends across several markets heading into Q2 [4][10] - The company anticipates revenue guidance for Q2 to be $210 million to $240 million, reflecting potential shipment delays due to tariffs [22] - Management remains confident in navigating current uncertainties while focusing on long-term opportunities [14] Other Important Information - The company ended the quarter with $927 million in cash and no debt, providing financial flexibility for strategic initiatives [21] - The impact of tariffs is expected to reduce over time as the company optimizes its supply chain and manufacturing processes [22][60] Q&A Session Summary Question: Can you elaborate on the end markets showing strength, particularly in China? - Management noted strong bookings growth in China, particularly in e-mobility and micromachining, with a book-to-bill ratio above 1 [28][29] Question: What are the reasons for the near-term delays in orders? - Delays are attributed to shifting manufacturing to optimize costs and address tariff issues, with expectations to fulfill most orders by Q3 [36][37] Question: What is the expected contribution from the partnership with Axonobel? - The partnership aims to replace traditional curing methods with more efficient laser technology, with potential for significant long-term impact [45][46] Question: How is the company addressing tariff impacts on gross margin? - Management indicated that most gross margin impacts are near-term and related to tariffs, with plans to mitigate these through supplier qualification and manufacturing adjustments [55][60] Question: Is there ongoing price competition in the market? - Price competition remains a concern in the cutting market in China, but the company maintains strong differentiation in other key areas [59][60]

Financial Performance - Revenue decreased by 10% year-over-year, with Q1 2025 revenue at $2278 million compared to $2520 million in Q1 2024[3, 4] - GAAP gross margin increased by 70 basis points year-over-year to 394% in Q1 2025[3, 21] - GAAP operating income significantly decreased by 91% year-over-year, from $191 million in Q1 2024 to $18 million in Q1 2025[4] - Net income decreased by 84% year-over-year, from $241 million in Q1 2024 to $38 million in Q1 2025[4] - Earnings per diluted share (EPS) decreased by 83% year-over-year, from $052 in Q1 2024 to $009 in Q1 2025[3, 4] - Adjusted EBITDA decreased by 19% year-over-year, from $403 million in Q1 2024 to $327 million in Q1 2025[3, 4, 24] - Adjusted EPS decreased by 38% year-over-year, from $050 in Q1 2024 to $031 in Q1 2025[3, 4, 26] Revenue and Market Trends - Emerging growth products accounted for 51% of total revenue[3] - Sales declined year-over-year in North America due to lower revenue in cutting and welding applications[10] - European sales declined primarily due to lower demand in cutting and welding applications and exit from Russia[10] Financial Guidance - The company expects Q2 2025 revenue to be between $210 million and $240 million[15]

Revenue Performance - First quarter 2025 revenue was $227.8 million, a decrease of 10% year-over-year from $252.0 million in Q1 2024[2]. - Materials processing sales, which accounted for 86% of total revenue, decreased by 14% year-over-year, while sales in medical and advanced applications increased by 25%[4]. - For Q2 2025, the company expects revenue between $210 million and $240 million, reflecting a potential $15 million impact from shipment delays due to tariffs[7]. Profitability Metrics - Gross margin improved to 39.4%, up 70 basis points year-over-year, while operating income fell to $1.8 million, down 91% from $19.1 million[2][5]. - Net income for the first quarter was $3.8 million, an 84% decline compared to $24.1 million in the same period last year[2][4]. - Adjusted EBITDA was $32.7 million, a 19% decrease from $40.3 million in Q1 2024, with adjusted earnings per diluted share at $0.31, down 38% year-over-year[2][5]. - Adjusted gross profit for Q1 2025 was $91,050,000, down from $98,024,000 in Q1 2024, a decrease of about 7.5%[30]. - Adjusted net income for Q1 2025 was $13,128,000, down from $23,159,000 in Q1 2024, a decrease of about 43.4%[33]. Cash Flow and Investments - Cash generated from operations in Q1 was $13 million, with capital expenditures amounting to $25 million[5]. - Cash and cash equivalents at the end of Q1 2025 were $363,046,000, down from $496,452,000 at the end of Q1 2024, a decrease of approximately 26.8%[17]. - Net cash provided by operating activities in Q1 2025 was $13,445,000, down from $54,596,000 in Q1 2024, a decline of approximately 75.5%[17]. - The company incurred $333,009,000 in purchases of short-term investments in Q1 2025, compared to $226,521,000 in Q1 2024, an increase of about 47%[17]. - The company experienced a net decrease in cash and cash equivalents of $256,994,000 in Q1 2025, compared to a decrease of $18,222,000 in Q1 2024[17]. Market Trends - The book-to-bill ratio was above one, indicating strong order momentum entering Q2 2025[6]. - The company reported a 28% year-over-year decline in sales in Europe, while sales in Asia increased by 8%[4]. Tax and Adjustments - The adjusted tax rate for Q1 2025 was 21%, compared to 23% in Q1 2024, showing a decrease of 2 percentage points[34]. - Adjusted EBITDA for Q1 2025 was $32,681,000, compared to $40,270,000 in Q1 2024, reflecting a decline of approximately 19.0%[32].

Growth from Strategic Initiatives Drove Revenue Above the Midpoint of Guidance Book-to-Bill was Above One and Highest in Over Two Years MARLBOROUGH, Mass., May 06, 2025 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the first quarter ended March 31, 2025. | | | | Three Months Ended March 31, | | | | | --- | --- | --- | --- | --- | --- | --- | | (In millions, except per share data and | | | | | | | | percentages) | | 2025 | | 2024 | Change | | | Revenue | $ ...

Core Viewpoint - IPG Photonics is expected to report a significant decline in earnings and revenues for the first quarter of 2025, primarily due to lower demand in its materials processing business and increased competition, particularly in China [1][3][4]. Financial Expectations - The company anticipates non-GAAP earnings per share between 5 cents and 35 cents, with revenues expected to range from $210 million to $240 million [1]. - The Zacks Consensus Estimate for earnings is set at 21 cents per share, reflecting a 59.62% year-over-year decline [1]. - The revenue estimate stands at $221.18 million, indicating a year-over-year decrease of 12.23% [2]. Demand and Market Conditions - IPG Photonics is facing reduced demand for welding, cutting, and marking applications, which has negatively impacted its financial performance [3]. - In the fourth quarter of 2024, revenues from China fell by 22% year-over-year due to lower demand in industrial markets and competitive pressures [4]. - Economic uncertainty in Europe is also affecting industrial demand and capital investments, leading to sluggish demand from cutting OEM customers [5]. Strategic Initiatives - The company is strategically expanding into new end-markets such as 3D printing, micro-materials processing, electric vehicles, and medical devices, which may provide some offsetting benefits to its revenue [6]. Earnings Surprise History - IPG Photonics has a mixed earnings surprise history, having missed the Zacks Consensus Estimate in two of the last four quarters while beating it in the other two, with an average earnings surprise of 15.97% [2]. Earnings ESP and Zacks Rank - Currently, IPG Photonics has an Earnings ESP of -33.33% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [7].