Fiber laser manufacturer IPG Photonics (NASDAQ: IPGP) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.

IPG Photonics beat analysts’ revenue expectations by 9.4% last quarter, reporting revenues of $250.7 million, down 2.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is IPG Photonics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting IPG Photonics’s revenue to grow 2.5% year on year to $238.9 million, a reversal from the 22.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. IPG Photonics has missed Wall Street’s revenue estimates three times over the last two years.

Looking at IPG Photonics’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 3.3%, and FormFactor reported a revenue decline of 2.5%, topping estimates by 1.3%. Teradyne traded up 20.6% following the results while FormFactor was also up 24.3%.

Read our full analysis of Teradyne’s results here and FormFactor’s results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 3.1% on average over the last month. IPG Photonics is down 3.5% during the same time and is heading into earnings with an average analyst price target of $82.83 (compared to the current share price of $85.10).

P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.