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SSYS Q2 Revenues Miss: Will FY24 Outlook Drag Shares Down?
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Stratasys (SSYS - Free Report) reported a loss of 4 cents per share in second-quarter 2024, in line with the Zacks Consensus Estimate. The company posted non-GAAP earnings of 4 cents per share in the year-ago quarter.
Quarterly revenues fell 13.6% year over year to $138 million and missed the consensus mark by 6.78%. The top line was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Stratasys Quarter in Detail
Segment-wise, Product revenues declined 14.2% from the year-ago quarter’s figure to $93.6 million. Within Product revenues, System revenues plunged 40% year over year to $29 million. Consumables revenues increased 6.3% year over year to $64.6 million.
Revenues from Services declined 12.2% year over year to $44.4 million. Within Service revenues, Customer Support revenues advanced 3.8% year over year to $30.5 million.
Stratasys’ non-GAAP gross profit fell 9.8% from the year-ago period’s levels to $67.7 million. The non-GAAP gross margin expanded 50 basis points (bps) to 49%.
Non-GAAP operating expenses dropped 2.2% year over year to $70.9 million.
The non-GAAP operating loss came in at $3.2 million against a profit of $5 million in the year-ago quarter. The margin contracted 540 bps to 2.3%. Also, adjusted EBITDA plunged 78.3% to $2.3 million.
In second-quarter 2024, SSYS solidified a partnership with AM Craft to support the additive manufacturing of EASA-certified aircraft sustainment parts. The partnership opens up new opportunities in the aviation sector.
In the reported quarter, SSYS also saw significant growth driven by the launch of new products, including SAF High-Def printing capabilities and the H350 version 1.5 as well as SAF Polypropylene material. These developments expanded their manufacturing applications and use cases, contributing to the company’s enhanced performance.
Stratasys software offerings, including GrabCAD Print Pro and GrabCAD Streamline Pro, showed strong demand in the second quarter, with Print Pro benefiting from its expansion to PolyJet users and Streamline Pro gaining traction.
Stratasys Balance Sheet & Other Details
Stratasys exited the second quarter with cash and short-term deposits of $150.9 million compared with $161.1 million reported at the end of the previous quarter.
During the quarter ended in June, the company reported a negative operating cash flow of $2.4 million, a significant decline compared to the positive operating cash flow of $7.3 million recorded at the end of the previous quarter.
Stratasys Lowers 2024 Outlook
For 2024, management projects revenues to be between $570 million and $580 million. Non-GAAP earnings per share are forecast in the range of 1-5 cents. The company anticipates gross margins to be between 48.7% and 49%. The non-GAAP operating margin is expected to be in the range of 0.5-1%.
Stratasys estimates 2024 operating expenses in the band of $276-$278 million. Adjusted EBITDA is projected in the range of $24-$27 million.
Previously, the company had forecast 2024 revenues between $630 million and $645 million, with non-GAAP earnings per share ranging from 12 to 19 cents. Gross margins were expected to be between 49% and 49.5%, and the non-GAAP operating margin was projected to be between 2.5% and 3.5%.
Operating expenses were estimated in the range of $292 million to $297 million, with adjusted EBITDA projected between $40 million and $45 million.
Stratasys’ shares have plunged 51.5% year to date against the Zacks Computer & Technology sector’s rise of 20.3%. Dull guidance might potentially hurt the company’s share price in the near term. Investors often react to future projections and less optimistic outlooks can lead to selling pressure.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
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SSYS Q2 Revenues Miss: Will FY24 Outlook Drag Shares Down?
Stratasys (SSYS - Free Report) reported a loss of 4 cents per share in second-quarter 2024, in line with the Zacks Consensus Estimate. The company posted non-GAAP earnings of 4 cents per share in the year-ago quarter.
Quarterly revenues fell 13.6% year over year to $138 million and missed the consensus mark by 6.78%. The top line was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Stratasys Quarter in Detail
Segment-wise, Product revenues declined 14.2% from the year-ago quarter’s figure to $93.6 million. Within Product revenues, System revenues plunged 40% year over year to $29 million. Consumables revenues increased 6.3% year over year to $64.6 million.
Revenues from Services declined 12.2% year over year to $44.4 million. Within Service revenues, Customer Support revenues advanced 3.8% year over year to $30.5 million.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Stratasys’ non-GAAP gross profit fell 9.8% from the year-ago period’s levels to $67.7 million. The non-GAAP gross margin expanded 50 basis points (bps) to 49%.
Non-GAAP operating expenses dropped 2.2% year over year to $70.9 million.
The non-GAAP operating loss came in at $3.2 million against a profit of $5 million in the year-ago quarter. The margin contracted 540 bps to 2.3%. Also, adjusted EBITDA plunged 78.3% to $2.3 million.
In second-quarter 2024, SSYS solidified a partnership with AM Craft to support the additive manufacturing of EASA-certified aircraft sustainment parts. The partnership opens up new opportunities in the aviation sector.
In the reported quarter, SSYS also saw significant growth driven by the launch of new products, including SAF High-Def printing capabilities and the H350 version 1.5 as well as SAF Polypropylene material. These developments expanded their manufacturing applications and use cases, contributing to the company’s enhanced performance.
Stratasys software offerings, including GrabCAD Print Pro and GrabCAD Streamline Pro, showed strong demand in the second quarter, with Print Pro benefiting from its expansion to PolyJet users and Streamline Pro gaining traction.
Stratasys Balance Sheet & Other Details
Stratasys exited the second quarter with cash and short-term deposits of $150.9 million compared with $161.1 million reported at the end of the previous quarter.
During the quarter ended in June, the company reported a negative operating cash flow of $2.4 million, a significant decline compared to the positive operating cash flow of $7.3 million recorded at the end of the previous quarter.
Stratasys Lowers 2024 Outlook
For 2024, management projects revenues to be between $570 million and $580 million. Non-GAAP earnings per share are forecast in the range of 1-5 cents. The company anticipates gross margins to be between 48.7% and 49%. The non-GAAP operating margin is expected to be in the range of 0.5-1%.
Stratasys estimates 2024 operating expenses in the band of $276-$278 million. Adjusted EBITDA is projected in the range of $24-$27 million.
Previously, the company had forecast 2024 revenues between $630 million and $645 million, with non-GAAP earnings per share ranging from 12 to 19 cents. Gross margins were expected to be between 49% and 49.5%, and the non-GAAP operating margin was projected to be between 2.5% and 3.5%.
Operating expenses were estimated in the range of $292 million to $297 million, with adjusted EBITDA projected between $40 million and $45 million.
Stratasys’ shares have plunged 51.5% year to date against the Zacks Computer & Technology sector’s rise of 20.3%. Dull guidance might potentially hurt the company’s share price in the near term. Investors often react to future projections and less optimistic outlooks can lead to selling pressure.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
ADOBE (ADBE - Free Report) , Daktronics (DAKT - Free Report) and Smartsheet (SMAR - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
ADOBE, Daktronics and Smartsheet each carry a Zacks Rank 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe’s shares have declined 4.5% year to date. ADBE is scheduled to release third-quarter fiscal 2024 results on Sep. 12.
Daktronics’ shares have gained 72.3% year to date. DAKT is set to report its first-quarter fiscal 2025 results on Sep. 4.
Smartsheet’s shares have moved up 2.2% year to date. SMAR is scheduled to release second-quarter fiscal 2025 results on Sep 5.