IPGP Set to Report Q2 Earnings: What's in Store for the Stock?

IPG Photonics IPGP is scheduled to release second-quarter 2025 results on Aug. 5.

For the to-be-reported quarter, IPGP expects non-GAAP earnings to be between a loss of 5 cents and earnings of 25 cents per share. Revenues are anticipated between $210 million and $240 million, indicating a roughly $15 million negative impact from shipment delays due to higher tariffs.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 10 cents per share, unchanged over the past 30 days, indicating a 77.78% year-over-year decline. The consensus mark for revenues is pegged at $224.1 million, indicating a year-over-year decrease of 13.02%.

IPGP has a mixed earnings surprise history. It missed the Zacks Consensus Estimate in two of the trailing four quarters and beat in the remaining two, resulting in an average surprise of 25.49%.
 

IPG Photonics Corporation Price and EPS Surprise

IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote

In terms of share price movement, since first-quarter 2025 results (May 6), IPGP shares have jumped 24.8%, outperforming the broader Zacks Computer and Technology sector’s appreciation of 13.7% and the Zacks Laser Systems and Components industry’s return of 21.8%. 
 
Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for IPG Photonics’ Q2 Earnings

IPG Photonics is expected to have faced revenue headwinds in the second quarter of 2025 due to shipment delays caused by newly imposed tariffs. Profitability is likely to have come under pressure as tariffs are expected to have negatively impacted gross margins by 150 to 200 basis points. Combined with elevated operating expenses ($86-$88 million) from ongoing investments in strategic areas, this is likely to have negatively impacted the bottom-line figure in the to-be-reported quarter.

IPGP’s welding business saw signs of stabilization with share gains in e-mobility in the first quarter of 2025. Cutting business saw order increase in Japan, Europe, and North America markets, which began to stabilize. Cleaning and some other materials processing applications businesses are benefiting from the cleanLASER acquisition and continuing growth in additive manufacturing. These trends are expected to have continued in the second quarter of 2025.

Growing momentum in medical (Urology end-market), micromachining and advanced applications bodes well for IPGP’s to-be-reported quarter results. Newly launched micromachining is expected to have driven top-line growth in this market segment.

IPG Photonics’ expanding partner base that includes the likes of AkzoNobel is noteworthy. The companies are collaborating to apply laser technology to cure powder coatings. A strong partner base bodes well for IPGP’s near-term prospects.

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 #2 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 these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

Arista Networks ANET has an Earnings ESP of +0.96% and sports a Zacks Rank of #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have appreciated 67.8% year to date. Arista Networks is set to report its second-quarter 2025 results on Aug. 5.

Bumble BMBL presently has an Earnings ESP of +37.01% and a Zacks Rank #1. 

Bumble shares have plunged 12.4% year to date. Bumble is scheduled to report its second-quarter 2025 results on Aug. 6.

MKS Inc. MKSI currently has an Earnings ESP of +1.33% and a Zacks Rank #1.

MKS shares are up 45.8% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.

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This article originally published on Zacks Investment Research (zacks.com).

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