Large scale users continue to rely on IPG Photonics. New applications are being developed, moreover. So even if competitors take slices of the company's existing markets overall volume is poised to keep rising. The fiber category is likely to capture a larger portion of the overall laser industry in future years, as well. Margins probably will come down a little bit as IPG Photonics enters new areas and competition exerts a modest degree of pressure on the more straighforward parts of the business. But profitability is poised to stay high as IPG Photonics sustains its industry leading technology.
Our 2013 forecast assumes more economic weakness. If demand picks up a significantly better showing could develop. For now we estimate sales will climb 15%-20% to $650-$675 million to provide income of $3.15-$3.35 a share. Longer term growth might be amplified with acquisitions.
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