Shares of IPG Photonics Corporation (IPGP) plunged 5.62% on Tuesday during the intraday trading session, following the company's disappointing fourth-quarter 2024 financial results and weaker-than-expected guidance for the first quarter of 2025.

The fiber laser manufacturer reported a 21.6% year-over-year decline in revenue to $234.3 million for the fourth quarter, although this figure slightly surpassed analysts' estimates. However, earnings per share of $0.18 missed expectations of $0.21, representing a significant drop from the prior year's $0.89 EPS.

IPG Photonics attributed the revenue decline to lower sales in its core materials processing and medical applications segments, reflecting challenging demand conditions in the global industrial market. The company's CEO, Dr. Mark Gitin, acknowledged the difficult environment and emphasized the company's focus on managing costs and investing in strategic growth initiatives.

Looking ahead, IPG Photonics provided revenue guidance for the first quarter of 2025 in the range of $210 million to $240 million, falling short of analysts' expectations of $234.4 million. The company also guided for adjusted earnings per share between $0.05 and $0.35, missing the consensus estimate of $0.35.

The disappointing results and outlook, coupled with the announcement of a leadership change in the sales and marketing division, weighed heavily on investor sentiment, leading to the stock's sharp decline on Tuesday.