Why IPG Photonics Corporation Jumped 10.6% Today

By Anders Bylund Markets Fool.com

What happened

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Shares of IPG Photonics (NASDAQ: IPGP) rose as much as 10.6% on Tuesday morning, following Monday night's release of strong first-quarter results.

So what

IPG's revenue soared 38% higher year over year, landing at $286 million. On the bottom line, earnings increased by 50% to $1.38 per diluted share. Analysts would have settled for earnings near $1.20 per share on something like $254 million in top-line sales.

Image source: Getty Images.

Now what

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The maker of high-power fiber lasers and optical amplifiers enjoyed a torrential order flow from China and Eastern Europe. Sales in the materials processing division jumped 33% to $264 million, but the so-called other applications segment's revenue surged 140% higher due to increasing interest in lasers for telecom equipment applications.

Looking ahead, IPG's earnings guidance for the second quarter stopped at $1.60 per share alongside a revenue target near $330 million. Both of these projections ran far ahead of Wall Stret's current views.

IPG shares are now trading at fresh all-time highs, including a 47% gain over the last six months. Investors did not interpret this report as a buy signal for fiber-optic stocks in general, as other companies in the space reported weaker results last night.

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Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of and recommends IPG Photonics. The Motley Fool has a disclosure policy.