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Stratasys (SSYS) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
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Stratasys (SSYS - Free Report) reported first-quarter 2024 loss of 2 cents per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. The company reported non-GAAP earnings of 2 cents per share in the year-ago quarter.
The company’s revenues dipped 3.5% year over year to $144.05 million and missed the consensus mark by 2.36%. Top-line growth was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Segment-wise, Product revenues decreased 1.8% from the year-ago quarter to $99.19 million. Within Product revenues, System revenues plunged 18.7% year over year to $32.9 million, while Consumables revenues increased 9.6% year over year to $66.3 million.
Revenues from Services decreased 7.3% year over year to $44.9 million. Within Service revenues, Customer Support revenues advanced 3.3% year over year to $31.2 million.
Stratasys’ non-GAAP gross profit decreased 0.9% from the year-ago period to $70.03 million. The non-GAAP gross margin expanded 130 basis points (bps) to 48.6%.
Non-GAAP operating expenses increased 2.9% year over year to $71.2 million.
The non-GAAP operating loss came in at $1.2 million against a profit of $1.5 million in the year-ago quarter. The margin contracted 180 bps to 1.3%. Also, adjusted EBITDA plunged 41.4% to $4.1 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $184.5 million compared with $184.5 million reported at the end of the previous quarter.
During the December-ended quarter, the company utilized an operating cash flow of $7.7 million compared with $18.1 million reported in the prior-year quarter.
2024 Outlook
For 2024, management projects revenues between $630 million and $645 million, and non-GAAP earnings per share in the range of 12-19 cents. The company projects gross margin between 49% and 49.5%. The non-GAAP operating margin is expected in the range of 2.5-3.5%.
Stratasys estimates 2024 operating expenses in the band of $292-$297 million. Adjusted EBITDA is projected in the range of $40-$45 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
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Stratasys (SSYS) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Stratasys (SSYS - Free Report) reported first-quarter 2024 loss of 2 cents per share, narrower than the Zacks Consensus Estimate of a loss of 4 cents. The company reported non-GAAP earnings of 2 cents per share in the year-ago quarter.
The company’s revenues dipped 3.5% year over year to $144.05 million and missed the consensus mark by 2.36%. Top-line growth was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Quarter in Detail
Segment-wise, Product revenues decreased 1.8% from the year-ago quarter to $99.19 million. Within Product revenues, System revenues plunged 18.7% year over year to $32.9 million, while Consumables revenues increased 9.6% year over year to $66.3 million.
Revenues from Services decreased 7.3% year over year to $44.9 million. Within Service revenues, Customer Support revenues advanced 3.3% year over year to $31.2 million.
Stratasys’ non-GAAP gross profit decreased 0.9% from the year-ago period to $70.03 million. The non-GAAP gross margin expanded 130 basis points (bps) to 48.6%.
Non-GAAP operating expenses increased 2.9% year over year to $71.2 million.
The non-GAAP operating loss came in at $1.2 million against a profit of $1.5 million in the year-ago quarter. The margin contracted 180 bps to 1.3%. Also, adjusted EBITDA plunged 41.4% to $4.1 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $184.5 million compared with $184.5 million reported at the end of the previous quarter.
During the December-ended quarter, the company utilized an operating cash flow of $7.7 million compared with $18.1 million reported in the prior-year quarter.
2024 Outlook
For 2024, management projects revenues between $630 million and $645 million, and non-GAAP earnings per share in the range of 12-19 cents. The company projects gross margin between 49% and 49.5%. The non-GAAP operating margin is expected in the range of 2.5-3.5%.
Stratasys estimates 2024 operating expenses in the band of $292-$297 million. Adjusted EBITDA is projected in the range of $40-$45 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Computer and Technology sector are Micron Technology (MU - Free Report) , SecureWorks (SCWX - Free Report) and Planet Labs PBC (PL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Micron Technology have jumped 54.2% year to date. MU is set to report third-quarter fiscal 2024 results on Jun 26.
Shares of SecureWorks have plunged 21.3% year to date. SCWX is scheduled to release first-quarter fiscal 2025 results on Jun 6.
Shares of Planet Labs PBC have plunged 25.9% year to date. PL is scheduled to release first-quarter fiscal 2025 results on Jun 6.