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IPG Photonics Beats Q3 Estimates With Margin Gains as Stock Slips on Wide Q4 Guidance

A wide fourth‑quarter outlook signaled caution, tempering the beat.

Overview

  • Adjusted earnings reached $0.35 per share versus the $0.14 consensus, with revenue at $250.79 million, up 7.6% year over year and above expectations.
  • Adjusted gross margin rose to 39.8% and GAAP gross margin to 39.5%, while adjusted EBITDA totaled $36.96 million, helped by higher revenue and lower inventory provisions despite higher product costs and tariffs.
  • Sales performance diverged by region, increasing 15% in Asia and 8% in North America while declining 7% in Europe from a year earlier.
  • The company ended the quarter with $346.03 million in cash, repurchased $16 million of shares, and continued to pursue tuck‑in acquisition opportunities.
  • Fourth‑quarter guidance called for adjusted EPS of $0.05 to $0.35 on revenue of $230 million to $260 million, with adjusted EBITDA of $21 million to $38 million and adjusted gross margin of 36% to 39%, and shares were down 2.13% to $84.07 at last check.