It has been about a month since the last earnings report for Stratasys (SSYS Quick QuoteSSYS - Free Report) . Shares have lost about 8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Stratasys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Stratasys reported non-GAAP loss of 13 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 23 cents. However, the bottom line compared unfavorably with the year-ago quarter’s earnings per share of 16 cents per share.

Stratasys’ revenues of $117.6 million missed the consensus mark of $121.1 million as well as declined 27.9% year over year. Economic weakness due to the outbreak of the coronavirus pandemic affected the top line.

Quarter Details

Segment wise, Product revenues plunged 33% from the year-ago quarter to $73.9 million. Within Product revenues, System revenues decreased 35.6% and Consumables revenues fell 30.6% year over year.

Revenues from Services decreased 17.2% year over year to $43.7 million. Within Service revenues, customer support revenues dropped 7.5% year over year.

Stratasys’ non-GAAP gross profit dipped 37.7% from the year-ago quarter to $53.3 million. Non-GAAP gross margin contracted 710 basis points (bps) to 45.4%.

Non-GAAP operating expenses declined 19.8% year over year to $61.4 million, aided by efforts to cut SG&A costs.

Non-GAAP operating loss totaled $8.1 million against an operating income of $0.8 million in the prior-year quarter.

The company exited the quarter with cash and cash equivalents of $313 million compared with the $325.5 million witnessed at the end of the previous quarter.

As of Jun 30, 2020, there was no long-term debt.

Net cash used in operating activities in the reported quarter was $9.7 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -7.41% due to these changes.

VGM Scores

At this time, Stratasys has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, 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.