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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.

Stratasys, Ltd. Price, Consensus and EPS Surprise

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.

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