IPG Photonics 3Q net income flat, shares fall
NEWS: IPG Photonics Corp.'s third-quarter net income ticked slightly lower from a year ago, as the high-powered laser maker spent more money on marketing and research and development. Its earnings missed Wall Street expectations, and its stock fell Friday.
DETAILS: The company, based in Oxford, Mass., makes lasers used to process industrial materials. IPG Photonics said it saw strong demand for the lasers from materials processing companies.
Research and development costs jumped 48 percent from a year ago to $11.5 million, and sales and marketing costs rose 18 percent to $6.8 million. CEO Valentin Gapontsev said in a statement that the increased investment "will drive future revenue and earnings growth."
NUMBERS: Net income slipped to $42.3 million, or 81 cents per share, in the three months ending Sept. 30 That compares with $42.4 million, or 81 cents per share, in the same period a year ago.
Revenue rose 10 percent to $172.2 million from $156.4 million.
Analysts expected earnings of 84 cents per share and revenue of $172.9 million, according to FactSet.
FUTURE: For the fourth quarter, IPG Photonics expects earnings between 68 cents and 82 cents per share and revenue between $155 million and $170 million.
Analysts expected earnings of 80 cents per share and revenue of $165.8 million.
STOCK: Down $6.20, or 9.4 percent, to $60.06 in morning trading Friday.