IPG Photonics (IPGP) - Get IPG Photonics Corporation Report was tumbling Tuesday as the provider of laser technology used in materials processing and other applications beat Wall Street's first-quarter earnings expectations and tapped a new chief executive.
Shares of the Oxford, Mass., company at last check were sliding 10% to $189.93.
IPG reported net income of $68.1 million, or $1.26 a share, up 87% from the $36.4 million, or 68 cents a share, of the year-earlier quarter. Analysts surveyed by FactSet were looking for earnings of $1.09 a share.
Revenue totaled $346 million, up 39% from a year earlier and beating the FactSet consensus of $328.4 million.
Looking ahead, the company said it expected second-quarter earnings of $1.20 to $1.50 a share on revenue of $360 million to $390 million.
FactSet is calling for earnings of $1.36 a share and revenue of $362 million.
"We saw firm demand in welding applications, growth in electric vehicle battery production and solar cell manufacturing that helped our results," Eugene Scherbakov, the newly named CEO, said in a statement.
"Initial orders for our hand-held welder were strong and we are increasing production of this innovative device to meet growing customer demand."
IPG Phonetics said that effective immediately Scherbakov, the current chief operating officer, would succeed Valentin Gapontsev, the company's founder, as CEO.
Gapontsev, who is currently chairman, will become executive chairman.
Scherbakov’s technological knowledge as well as extensive understanding of the Company's operations, sales and customers contributed significantly to IPG’s success since he joined us in 1995,” Gapontsev said in a statement.