IPG Photonics (IPGP) Stock Forecast & Price Target

IPG Photonics Corporation reported an 18% year-over-year revenue increase when adjusting for the disposal of its Russian business and a minor acquisition in Germany, highlighting robust performance across various markets. The company achieved a gross margin of 38.6%, exceeding guidance and demonstrating a notable sequential improvement from previous quarters, indicating efficient cost management and enhanced profitability. Furthermore, emerging growth products contributed to 48% of total sales in Q4, showcasing the company's successful expansion into under-penetrated sectors such as medical and EV battery welding, which positions IPG favorably for future growth opportunities in diverse applications.

IPG Photonics Corp reported a significant decline in Q4 revenues, decreasing by 22% year-over-year and 21.5% when excluding the impact of divested Russian operations, reflecting persistent weaknesses in demand, particularly within the industrial and e-mobility markets. Additionally, the company's fiscal year 2024 revenue fell by 24% year-over-year, accompanied by a notable decline in adjusted gross margins and earnings per share, which were below consensus estimates. Guidance for Q1 2025 also suggests a continued muted revenue outlook, with management indicating that improvements are not expected until 2026, underscoring the broader challenges facing the firm in a subdued market environment.