Tough Times Make IPG Photonics Miss the Target
There's a lot going on in the world, with geopolitical strife centering on tariff and trade issues, and macroeconomic slowdowns in several countries weighing on overall business activity. In the laser industry, IPG Photonics (NASDAQ: IPGP) is extremely sensitive to the fluctuations of the global economy, and despite hopes that it could overcome tough conditions in the laser market, the company has struggled to reach its full potential.
Coming into Tuesday's second-quarter financial report, IPG Photonics investors expected to be able to see the impact of the difficult environment on the company's core financial results. The laser maker indeed reported weaker results, but it still thinks that it'll be able to overcome headwinds in the long run.
IPG Photonics' second-quarter results continued negative trends from past quarters. Sales were down 12% to $363.8 million, which was actually somewhat better than the 15% top-line decline that most of those following the stock had expected to see. Net income plunged more than 40% to $72.3 million, however, and that resulted in earnings of $1.34 per share. That missed the consensus forecast among investors for $1.38 per share in earnings.
Quelle Fool.com
