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Stratasys (SSYS - Free Report) first-quarter 2023 non-GAAP earnings of 2 cents per share beat the Zacks Consensus Estimate of a loss of 8 cents. The bottom line remained flat year over year.
The company’s revenues declined 2.6% year over year to $149.4 million, which came ahead of the consensus mark of $142.2 million. The year-over-year decline in the top line can primarily be attributed to the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were down 10.7% from the year-ago quarter to $101 million, primarily due to the divestiture and negative impact of foreign exchange rates. Within Product revenues, System revenues declined 25.8%, while Consumables revenues grew 3.3%.
Revenues from Services decreased 3.9% year over year to $48.4 million. Within Service revenues, customer support revenues advanced 4.9% year over year.
Stratasys’ non-GAAP gross profit decreased 8.6% from the year-ago period to $70.7 million. The non-GAAP gross margin remained flat at 47.3%.
Non-GAAP operating expenses declined to $69.2 million year over year from $75.3 million. As a percentage of revenues, the same expanded 20 basis points (bps) to 46.3%.
The non-GAAP operating income came in at $1.5 million compared with the year-ago quarter’s income of $2 million. The margin contracted by 20 bps to 1%. Also, adjusted EBITDA dropped 13.6% to $7 million.
Balance Sheet & Other Details
Stratasys exited the first quarter with cash and short-term deposits of $287.6 million compared with $327.8 million witnessed at the end of the previous quarter.
As of Mar 31, 2023, there was no long-term debt. During the January-March quarter, the company utilized operating cash flow of $17.9 million.
FY23 Outlook
For 2023, management projects revenues between $630 million and $670 and non-GAAP earnings in the range of 12-24 cents per share. The company projects a gross margin between 48% and 49%. Non-GAAP operating margin is expected in the range of 2.5%-3.5%.
Stratasys estimates 2023 operating expenses in the range of $290-$300 million. Adjusted EBITDA is forecast in the band of $35-$50 million.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have lost 18.1% over the past year.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 14% upward to $2.79 per share over the past 30 days. For 2023, earnings estimates have moved north by 12.1% to $11.76 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have gained 880.9% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have lost 23.4% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 11 cents to $2.04 per share over the past 30 days. For 2023, earnings estimates have moved up by 39 cents to $9.54 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 8.2% in the past year.
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Stratasys (SSYS) Q1 Earnings & Sales Surpass Expectations
Stratasys (SSYS - Free Report) first-quarter 2023 non-GAAP earnings of 2 cents per share beat the Zacks Consensus Estimate of a loss of 8 cents. The bottom line remained flat year over year.
The company’s revenues declined 2.6% year over year to $149.4 million, which came ahead of the consensus mark of $142.2 million. The year-over-year decline in the top line can primarily be attributed to the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were down 10.7% from the year-ago quarter to $101 million, primarily due to the divestiture and negative impact of foreign exchange rates. Within Product revenues, System revenues declined 25.8%, while Consumables revenues grew 3.3%.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Revenues from Services decreased 3.9% year over year to $48.4 million. Within Service revenues, customer support revenues advanced 4.9% year over year.
Stratasys’ non-GAAP gross profit decreased 8.6% from the year-ago period to $70.7 million. The non-GAAP gross margin remained flat at 47.3%.
Non-GAAP operating expenses declined to $69.2 million year over year from $75.3 million. As a percentage of revenues, the same expanded 20 basis points (bps) to 46.3%.
The non-GAAP operating income came in at $1.5 million compared with the year-ago quarter’s income of $2 million. The margin contracted by 20 bps to 1%. Also, adjusted EBITDA dropped 13.6% to $7 million.
Balance Sheet & Other Details
Stratasys exited the first quarter with cash and short-term deposits of $287.6 million compared with $327.8 million witnessed at the end of the previous quarter.
As of Mar 31, 2023, there was no long-term debt. During the January-March quarter, the company utilized operating cash flow of $17.9 million.
FY23 Outlook
For 2023, management projects revenues between $630 million and $670 and non-GAAP earnings in the range of 12-24 cents per share. The company projects a gross margin between 48% and 49%. Non-GAAP operating margin is expected in the range of 2.5%-3.5%.
Stratasys estimates 2023 operating expenses in the range of $290-$300 million. Adjusted EBITDA is forecast in the band of $35-$50 million.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have lost 18.1% over the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) . While Meta Platforms and Momo sport a Zacks Rank #1 (Strong Buy), ServiceNow carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 14% upward to $2.79 per share over the past 30 days. For 2023, earnings estimates have moved north by 12.1% to $11.76 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have gained 880.9% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have lost 23.4% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 11 cents to $2.04 per share over the past 30 days. For 2023, earnings estimates have moved up by 39 cents to $9.54 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 8.2% in the past year.