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Stratasys Gears Up to Report Q2 Earnings: Key Factors to Note

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Stratasys (SSYS - Free Report) is slated to release second-quarter 2024 results on Aug. 29.

The Zacks Consensus Estimate for Stratasys’ second-quarter revenues is pegged at $148.08 million, indicating a year-over-year decrease of 7.31%. The consensus mark for the bottom line is pegged at a loss of 4 cents per share. SSYS posted non-GAAP earnings of 4 cents per share in the year-ago quarter.

Its earnings beat the Zacks Consensus Estimate twice in the trailing four quarters, matched once and missed once, the average surprise being 58.33%.

Let’s see how things have shaped up before the upcoming announcement.

Stratasys, Ltd. Price and EPS Surprise

Stratasys, Ltd. Price and EPS Surprise

Stratasys, Ltd. price-eps-surprise | Stratasys, Ltd. Quote

Factors to Consider

The year-over-year expected decline in top and bottom lines is due to divestitures of certain businesses and unfavorable foreign currency exchange rates. Nonetheless, Stratasys’ second-quarter performance is likely to have benefited from steady demand for its products and solutions. 

With many engineers, designers, architects and entrepreneurs resorting to 3D solutions for their primary designing and product modeling, the 3D printing market is becoming a favorable long-term investment opportunity. This trend is likely to have spurred the demand for Stratasys’ 3D products and solutions in the second quarter. In the quarter to be reported, Stratasys announced its new SAF HighDef Printing capabilities and the launch of the H350 printer, Version 1.5 (V.1.5), to expand SAF adoption with additional applications and use cases for a growing set of manufacturing end markets.

SSYS also launched the J5 Digital Anatomy 3D printer, which is designed to meet the rising need for affordable and high-fidelity anatomical models. An improvement in product quality and performance, along with multiple product launches, is expected to have boosted the firm’s performance.

The company announced updates to several Industrial and Healthcare Business Unit products and Stratasys Direct. These include a new open platform for the F900 3D printer, more on-demand 3D printing capabilities and a new high-performance material for its Fused Deposition Modeling line. These product launches with enhanced capabilities are likely to have helped the company gain new customers in the to-be-reported quarter.

However, the weakening global economy amid ongoing macroeconomic issues has led enterprises to postpone their large IT spending plans. This might have hurt Stratasys’ top line in the second quarter. Additionally, inflation and increased component costs are likely to have weighed on Stratasys’ profitability in the quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for SSYS this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though Stratasys currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.

Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +3.50% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, indicating a significant improvement of 93.6% from the prior-year quarter’s figure of $1.10. Shares of ANF have returned 92.5% in the year-to-date period.

Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and carries a Zacks Rank #3 at present.

The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for Affirm’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have plunged 36% in the year-to-date period.

American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +1.97% and carries a Zacks Rank #3 at present.

The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 38 cents per share, which indicates an improvement of 52% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have gained 4.8% in the year-to-date period.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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