Please do not leave this page until complete. This can take a few moments.
Oxford laser manufacturer IPG Photonics saw the values of its shares drop 27 percent on Tuesday morning, eroding $3 billion of its total valuation in a few hours.
IPG's price per share was trading at about $163.50 at 11:15 a.m. Tuesday, a drop from its Monday closing price of $224.30 and its lowest level since August.
The loss in value came after IPG reported a second quarter profit increase of 17 percent, which fell short of expectations of Wall Street traders. The company lowered its revenue expectations for the rest of the year, largely due to concerns over international trade amid President Donald Trump's disputes with trade partners like Europe and China.
In the second quarter, IPG made a profit of $121.6 million, a notable bump compared to the $104.1 million the company made in last year’s second quarter. Quarterly revenues came in at $413.6 million compared to $369.4 million for the same period last year.
For the year, IPG’s revenue of $773.5 million for the first half of the year is an 18-percent increase over 2017, and its net income of $228 million is a 27-percent increase.
In a statement with the earnings release, CEO Valentin Gapontsev said the growth was driven by the company’s high-power products. However, Gapontsev also spoke hesitantly about international trade, as orders to Europe and China began to slow at the end of the quarter.
Sales in China increased by 10 percent and 18 percent in Europe compared to 23 percent in North America. Japanese sales declined 2 percent.
“This more modest year over year growth in orders has persisted through July, and we believe is primarily driven by macroeconomic and geopolitical factors rather than competitive dynamics,” he said.
There is rapid growth from some of the company’s new products, including ultraviolet, green and ultrafast pulsed lasers, but that growth will be offset by the modest outlook in China and Europe, Gapontsev said.
Despite the strong marks for the quarter and first half of the year, Gapontsev said IPG’s full-year revenue growth will be in the range of 7 percent to 9 percent due to the uncertain macroeconomic trade and geopolitical environment.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments