Industrial laser maker IPG Photonics Corp. (IPGP), Tuesday reported a 15 percent increase in profit for the first quarter, thanks mainly to a double-digit revenue growth. Earnings for the quarter came in line with analysts' estimates, while revenues topped expectations.
Oxford, Massachusetts-based IPG Photonics' first-quarter profit rose to $40.5 million or $0.77 a share from $35.1 million or $0.67 a share last year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.77 a share for the quarter. Analysts' estimates typically exclude one-time items.
IPG Photonics' first-quarter revenue grew 20 percent to $170.6 million from $141.9 million a year ago. Nine analysts had a consensus revenue estimate of $168.07 million for the quarter.
"Demand for IPG's high-power fiber lasers drove a 20 percent year-over-year sales increase for the first quarter of 2014," said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer.
Materials processing sales grew 22 percent as demand continues to increase for cutting applications across a number of industries. High-power fiber laser sales increased 33 percent and medium-power, QCW and laser systems sales also were up compared with the prior year.
Gross margin for the quarter dropped to 52.3 percent from 53.3 percent last year.
Looking forward to the second quarter, the company expects earnings of $0.77 to $0.92 per share and revenues of $173 million to $188 million. Analysts currently project second-quarter earnings of $0.90 per share and revenues of $188.15 million.
IPGP is currently trading at $66.15, down $2.04 or 3.00%, on the Nasdaq.
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