What Happened?

Shares of fiber laser manufacturer IPG Photonics (NASDAQ:IPGP) fell 12.1% in the afternoon session after the company reported weak first quarter 2025 results with revenue and EPS guidance for the next quarter missing expectations. Revenue fell 10%, hurt by a drop in demand for materials processing products, especially in North America and Europe.

Looking ahead, management expects delays from tariffs to slow shipments and weigh on profit margins. On the other hand, IPG Photonics beat analysts' adjusted operating income and EPS expectations this quarter. Overall, this print was on the weaker side.

The shares closed the day at $54.88, down 13.1% from previous close.

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What The Market Is Telling Us

IPG Photonics’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for IPG Photonics and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock gained 11.3% on the news that the company reported strong third-quarter earnings that revealed significant improvement in inventory levels. In addition, its revenue and adjusted EPS outperformed Wall Street's estimates. We note that its GAAP EPS and EBITDA fell short of Wall Street's estimates due to a divestiture. Overall, this was a solid quarter.

IPG Photonics is down 24.4% since the beginning of the year, and at $54.91 per share, it is trading 39.4% below its 52-week high of $90.65 from July 2024. Investors who bought $1,000 worth of IPG Photonics’s shares 5 years ago would now be looking at an investment worth $380.79.

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