IPG Photonics Corporation (NASDAQ: IPGP) has announced its financial results for the third quarter ending September 30, 2024, emphasizing its focus on execution and future growth opportunities. The company reported a revenue of $233.1 million for the third quarter of 2024, representing a 23% decrease from the same period in 2023. Additionally, for the nine months ended September 30, 2024, IPG Photonics reported a revenue of $742.8 million, reflecting a 25% decrease from the corresponding period in 2023.
The gross margin for the third quarter of 2024 was reported at 23.2%, significantly lower than the 44.1% gross margin for the same period in 2023. The operating loss for the third quarter of 2024 was $253.3 million, compared to an operating income of $55.7 million for the same period in 2023. This resulted in an operating margin of (108.7)% for the third quarter of 2024, down from 18.5% in the third quarter of 2023.
The net loss attributable to IPG Photonics Corporation for the third quarter of 2024 was $233.6 million, in contrast to a net income of $55.0 million for the same period in 2023. Consequently, the loss per diluted share for the third quarter of 2024 was reported at $5.33, compared to earnings per diluted share of $1.16 in the third quarter of 2023. Adjusted diluted EPS for the third quarter of 2024 was $0.29.
The company highlighted that the third-quarter revenue decline was primarily driven by lower demand in industrial and e-mobility markets. Specifically, materials processing sales, which accounted for 89% of total revenue, decreased by 22% year over year due to lower sales in cutting applications. Moreover, sales in North America decreased by 20%, while sales in China, Europe, and Japan decreased by 27%, 29%, and 8% respectively, on a year-over-year basis.
IPG Photonics also disclosed that the gross margin of 23.2% for the third quarter of 2024 decreased significantly year over year due to increased inventory provision and reduced absorption of manufacturing expenses, partially offset by lower tariffs and shipping costs.
Looking ahead, for the fourth quarter of 2024, IPG Photonics expects revenue to be in the range of $210 million to $240 million, with a gross margin between 35% and 38%, and operating expenses projected to be between $78 million and $80 million. The company anticipates delivering earnings per diluted share in the range of $0.05 to $0.35 for the fourth quarter of 2024, excluding the impact of the divested Russian operations.
As a result of these announcements, the company's shares have moved 8.1% on the market, and are now trading at a price of $85.66. Check out the company's full 8-K submission here.
