IPG Photonics IPGP is scheduled to release fourth-quarter 2024 results on Feb. 11.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

IPGP expects fourth-quarter 2024 non-GAAP earnings between 5 cents and 30 cents per share. Revenues are anticipated between $210 million and $240 million.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 22 cents per share, unchanged over the past 30 days, indicating a 75.28% year-over-year decline.

The Zacks Consensus Estimate for revenues is pegged at $230.26 million, implying a year-over-year decrease of 22.96%.

IPGP has a mixed earnings surprise history. It missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the other two, resulting in an average surprise of 16.59%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for IPG Photonics

The company is expected to have been affected by declining demand in key industrial markets, which likely led to lower revenues from its cutting, welding and marking applications. This downturn is anticipated to have pressured overall financial performance, contributing to weaker growth in the to-be-reported quarter.

Intense competition from China-based manufacturers, especially in the flat sheet cutting market, resulted in a significant year-over-year decline in cutting sales, particularly in Europe and the United States. IPGP is expected to have suffered from reduced market share and weakened revenue performance in these regions.

However, welding sales have been relatively stable over the past three quarters, with IPG Photonics showing signs of positive momentum in this area. The company is expected to have benefited from the consistent performance in its welding segment, supported by increased demand in key markets. This stability signals ongoing strength in the business, particularly with developments in the automotive sector.

IPGP is expected to have gained from its winning business with large global customers in electric vehicles and general automotive applications. This success is driving further adoption of the company's welding solutions, providing growth opportunities. As a result, the company is likely to have seen continued expansion in these markets.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

IPGP has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

BILL Holdings, Inc. BILL currently has an Earnings ESP of +10.90% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings shares have gained 26.4% in the trailing 12 months. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

Lumentum LITE has an Earnings ESP of +17.01% and a Zacks Rank #3 at present. 

Shares of Lumentum have jumped 52.1% in the trailing 12 months. LITE is slated to report second-quarter fiscal 2025 results on Feb. 6.

Yelp YELP currently has an Earnings ESP of +12.87% and a Zacks Rank of 3.

The company’s shares have declined 10% in the trailing 12 months. YELP is set to report its fourth-quarter 2024 results on Feb. 13.

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