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What's in the Cards for Stratasys (SSYS) in Q1 Earnings?
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Stratasys Ltd. (SSYS - Free Report) is set to report first-quarter 2017 results on May 16. Last quarter, the company delivered a positive earnings surprise of 250%. Let’s see how things are shaping up for this announcement.
Factors at Play
Stratasys reported encouraging fourth-quarter results. Both its top and bottom lines surpassed the Zacks Consensus Estimate. Also, year-over-year revenue comparisons were favourable. The company’s quarterly results were positively impacted by new product introductions and improved organizational changes at MakerBot business.
Stratasys recently entered into strategic partnerships with SIA Engineering Company Limited (SIAEC) and UK’s Manufacturing Technology Centre (MTC). The collaboration is aimed at accelerating adoption of additive manufacturing (AM) technologies for commercial aviation. We believe the recent deals is a strategic move by Stratasys to expand its geographic reach and drive market penetration.
Nonetheless, some customers are delaying their purchases owing to current economic conditions. In the 3D printer business, majority of customers have moved toward the lower-priced uPrint, which might affect the company’s margins in the upcoming quarters. Going forward, competition from 3D Systems Corporation (DDD - Free Report) is also a potent headwind.
Our proven model does not conclusively show that Stratasyswill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Stratasys’ ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stratasys carries a Zacks Rank #3, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Eagle Materials Inc (EXP - Free Report) , with an Earnings ESP of +1.16% and a Zacks Rank #2
Sell These Stocks.Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any of the above is lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
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What's in the Cards for Stratasys (SSYS) in Q1 Earnings?
Stratasys Ltd. (SSYS - Free Report) is set to report first-quarter 2017 results on May 16. Last quarter, the company delivered a positive earnings surprise of 250%. Let’s see how things are shaping up for this announcement.
Factors at Play
Stratasys reported encouraging fourth-quarter results. Both its top and bottom lines surpassed the Zacks Consensus Estimate. Also, year-over-year revenue comparisons were favourable. The company’s quarterly results were positively impacted by new product introductions and improved organizational changes at MakerBot business.
Stratasys recently entered into strategic partnerships with SIA Engineering Company Limited (SIAEC) and UK’s Manufacturing Technology Centre (MTC). The collaboration is aimed at accelerating adoption of additive manufacturing (AM) technologies for commercial aviation. We believe the recent deals is a strategic move by Stratasys to expand its geographic reach and drive market penetration.
Nonetheless, some customers are delaying their purchases owing to current economic conditions. In the 3D printer business, majority of customers have moved toward the lower-priced uPrint, which might affect the company’s margins in the upcoming quarters. Going forward, competition from 3D Systems Corporation (DDD - Free Report) is also a potent headwind.
Stratasys, Ltd. Price and EPS Surprise
Stratasys, Ltd. Price and EPS Surprise | Stratasys, Ltd. Quote
Earnings Whispers
Our proven model does not conclusively show that Stratasyswill beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Stratasys’ ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 2 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Stratasys carries a Zacks Rank #3, which increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +1.32% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eagle Materials Inc (EXP - Free Report) , with an Earnings ESP of +1.16% and a Zacks Rank #2
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any of the above is lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>