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Why Is Stratasys (SSYS) Up 9.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Stratasys first-quarter 2023 non-GAAP earnings of 2 cents per share beat the Zacks Consensus Estimate of a loss of 8 cents per share. 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 20.41% due to these changes.
VGM Scores
Currently, Stratasys has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Stratasys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Stratasys (SSYS) Up 9.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Stratasys Q1 Earnings & Sales Surpass Expectations
Stratasys first-quarter 2023 non-GAAP earnings of 2 cents per share beat the Zacks Consensus Estimate of a loss of 8 cents per share. 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 20.41% due to these changes.
VGM Scores
Currently, Stratasys has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Stratasys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.