We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stratasys (SSYS) Up 10.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 10.2% 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 catalysts.
Stratasys' Q1 Earnings and Revenues Miss Estimates
Stratasys reported first-quarter 2020 non-GAAP loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 6 cents. Moreover, the bottom line was much lower than the year-ago quarter's reported earnings of 10 cents.
Further, Stratasys’ revenues of $133 million missed the consensus mark of $137 million and declined 14.4% year over year.
Economic weakness due to the outbreak of the coronavirus pandemic affected the top line.
Moreover, the company withdrew its 2020 guidance, considering the uncertainty caused by the pandemic.
However, an increase in demand for 3D printed medical equipment was a tailwind.
Quarter Details
Segment-wise, Product revenues fell 20.9% from the year-ago quarter to $83.2 million. The figure was down 20.3% in constant currency.
Within Product revenues, System revenues decreased 39.5% and Consumables revenues fell 5.8% year over year, on a reported basis.
Notably, the adoption of PolyJet and FDM printers was strong.
Revenues from Services decreased 0.9% on a reported basis and 0.6% in constant currency to $49.7 million. However, within Service revenues, customer support revenues grew 2.2% year over year.
Margin
Stratasys’ non-GAAP gross profit decreased 20.3% from the year-ago quarter to $64.3 million. Non-GAAP gross margin contracted 360 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined 1.6% year over year to $72.7 million, driven by efforts to cut SG&A costs.
Non-GAAP operating loss totaled $8.4 million against an operating income of $6.8 million in the prior-year quarter.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $325.5 million compared with $321.8 million at the end of the previous quarter.
As of Mar 31, 2020, there was no long-term debt.
Net cash used in operating activities in the quarter was $11.3 million.
Outlook
The company’s cost-control initiatives are expected to reflect more vividly on expenses in the second quarter of 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -83.93% due to these changes.
VGM Scores
Currently, Stratasys has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 F. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stratasys (SSYS) Up 10.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 10.2% 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 catalysts.
Stratasys' Q1 Earnings and Revenues Miss Estimates
Stratasys reported first-quarter 2020 non-GAAP loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 6 cents. Moreover, the bottom line was much lower than the year-ago quarter's reported earnings of 10 cents.
Further, Stratasys’ revenues of $133 million missed the consensus mark of $137 million and declined 14.4% year over year.
Economic weakness due to the outbreak of the coronavirus pandemic affected the top line.
Moreover, the company withdrew its 2020 guidance, considering the uncertainty caused by the pandemic.
However, an increase in demand for 3D printed medical equipment was a tailwind.
Quarter Details
Segment-wise, Product revenues fell 20.9% from the year-ago quarter to $83.2 million. The figure was down 20.3% in constant currency.
Within Product revenues, System revenues decreased 39.5% and Consumables revenues fell 5.8% year over year, on a reported basis.
Notably, the adoption of PolyJet and FDM printers was strong.
Revenues from Services decreased 0.9% on a reported basis and 0.6% in constant currency to $49.7 million. However, within Service revenues, customer support revenues grew 2.2% year over year.
Margin
Stratasys’ non-GAAP gross profit decreased 20.3% from the year-ago quarter to $64.3 million. Non-GAAP gross margin contracted 360 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined 1.6% year over year to $72.7 million, driven by efforts to cut SG&A costs.
Non-GAAP operating loss totaled $8.4 million against an operating income of $6.8 million in the prior-year quarter.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $325.5 million compared with $321.8 million at the end of the previous quarter.
As of Mar 31, 2020, there was no long-term debt.
Net cash used in operating activities in the quarter was $11.3 million.
Outlook
The company’s cost-control initiatives are expected to reflect more vividly on expenses in the second quarter of 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -83.93% due to these changes.
VGM Scores
Currently, Stratasys has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 F. 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.