Benzinga | Nov 2, 2021 06:29PM EDT

IPG Shares Gain After Q3 Revenue Growth, Cautious Q4 Outlook

* IPG Photonics Corp (NASDAQ:IPGP) reported third-quarter FY21 revenue growth of 19% year-on-year to $379.2 million, beating the consensus of $368.3 million.

* The gross margin expanded by 100 bps to 49%. The operating margin expanded by 1,390 bps to 26.9%.

* EPS of $1.40 beat the consensus of $1.27.

* It held $1.5 billion in cash and equivalents.

* The company generated $305.2 million in operating cash flow during the nine months ended September 30.

* Growth in demand in welding applications across most geographies and higher revenue in cutting in North America and Europe, as well as emerging products and applications, such as foil cutting, cleaning, 3D printing, drilling, medical and solar cell applications, drove strong revenue in the quarter, despite significantly softer demand in cutting applications in China.

* Outlook: IPG sees Q4 revenue of $330 million- $360 million, below the consensus of $366.5 million.

* It sees Q3 EPS of $1.00 - $1.30, at par with the consensus of $1.30.

* Price action: IPGP shares closed higher by 8.62% at $177.34 on Tuesday.