IPG Photonics earnings, stock soar

Shares of fiber laser company IPG Photonics Corp. rose 9 percent today after the company reported that third-quarter earnings rose about 80 percent.

Profit climbed to $8.6 million, or 19 cents per share, from $4.7 million, or 12 cents per share. Revenue rose 32 percent to $47.9 million from $36.2 million.

Analysts, on average, expected income of 16 cents per share on revenue of $47.9 million, according to a poll by Thomson Financial.

Chief Executive Dr. Valentin Gapontsev said sales of materials processing lasers drove up revenue. He said demand for fiber laser is growing for test and measurement, instrumentation, sensing, research and defense.

In a statement, he said the company is seeing "the beginnings of a rebound in telecommunications sales on the strength of orders from Russia."

Friedman, Billings, Ramsey analyst Ian Fleischer said he believed IPG will continue to benefit from the continued displacement of some conventional lasers by fiber lasers, expansion of the company's product portfolio and its positive global growth.

He said he expected margins to increase because of integration, improved manufacturing capabilities, and decreases in the cost of the company's internally manufactured components.

Shares jumped $1.69, or 8.9 percent to $20.64 in morning trading. Shares have traded between $16.53 and $28 in the last year. (AP)