IPG Photonics 2Q profit jumps on laser sales gains

The performance narrowly beat Wall Street estimates, and the stock rose 5 percent in midday trading.

The Oxford-based firm said net income for the March-June period rose to $8.55 million, or 19 cents per share, from $6.39 million, or 14 cents per share, in the same quarter a year ago.

Sales rose 27 percent to $56 million from $44 million.

Analysts surveyed by Thomson Financial had forecast a slightly smaller profit in the latest period of 18 cents per share on $54.51 million in sales, on average.

Chief Executive Valentin Gapontsev said sales in European and Asian markets continued to show strength in the latest quarter, while sales in Japan and North America, which had previously been weak, turned around.

"Demand for our energy-efficient, cost-saving and high performance products remained strong in the second quarter, despite a challenging macroeconomic environment," Gapontsev said.

Lasers used for material processing showed the strongest growth, with a 42 percent quarterly revenue gain to $46.9 million.

Shares of IPG Photonics rose 90 cents, or 4.9 percent, to $19.31.