Shares of IPG Photonics (NASDAQ: IPGP) soared by 5.46% on October 29, 2024, as the fiber laser manufacturer reported better-than-expected Q3 results and announced a strategic acquisition. The stock's rally was driven by the company's strong financial performance and positive outlook for the future.

For the third quarter, IPG Photonics reported an adjusted earnings per share of $0.29, beating analyst estimates of $0.20. The company's revenue of $233.1 million also surpassed the consensus estimate of $227.8 million, despite a 22.6% year-over-year decline. The robust Q3 results were a testament to IPG Photonics' resilience and operational efficiency amidst challenging market conditions.

In addition to the upbeat Q3 performance, IPG Photonics also announced the acquisition of Clean-Lasersysteme (cleanLASER), a leading provider of laser cleaning systems. This strategic move is expected to strengthen IPG Photonics' position in the high-precision laser systems market for cleaning applications, which is considered an attractive growth opportunity. The acquisition is scheduled to close in the fourth quarter of 2024, subject to regulatory approval.