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Stratasys Ltd. (SSYS - Free Report) reported second-quarter 2018 earnings of 15 cents per share, which topped the Zacks Consensus Estimate of 8 cents. However, the figure was lower than the year-ago figure of 17 cents per share.
Stratasys’ revenues of $170.2 million beat the Zacks Consensus Estimate of $169 million. Also, on a year-over-year basis, the figure increased 0.12%.
Notably, revenues also improved sequentially, driven by a recovery in sales of high-end products, and improvement in demand from government and other key vertical customers like aerospace and automotive, in North America.
Segment wise, Products revenues were down 2.2% from the year-ago quarter to $118.4 million. Within Products revenues, system revenues fell 8.2%. Consumable revenues rallied 4.8%, driven by strong utilization of installed base of systems.
Revenues from Services increased 5.8% year over year to $51.8 million. The rise was primarily attributed to considerable growth in customer support revenues and significant improvement in performance at Stratasys Direct Manufacturing.
Stratasys continued to show its leadership in additive manufacturing by introducing new products that witnessed a strong response, including satisfactory number of Fortus 900 Pro and Fortus 900 Aircraft Interiors Certificate Solution, installed globally.
Furthermore, additional installations of the J700 Dental 3D Printer at dental labs translated into incremental unit sales to customers' installed base and steady recurring revenues from consumables.
Margin
Stratasys’ non-GAAP gross profit declined 0.9% from the year-ago period to $89.4 million. Moreover, non-GAAP gross margin fell 50 basis points (bps) on a year-over-year basis to 52.5% due to product mix.
Non-GAAP operating income totaled $10.6 million, down 4.5% from the year-ago quarter. Operating margin declined 30 bps to 6.2%. Increasing investments in research and development initiatives is an overhang.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $346.7 million compared with $346.5 million at the end of the previous quarter.. As of Jun 30, 2018, long-term debt came in at $24.6 million.
Net cash provided by operating activities in the quarter was $13 million.
Guidance
For full-year 2018, the company reiterated revenue guidance in the range of $670-$700 million.
Non-GAAP earnings per share are projected between 30 cents and 50 cents.
Furthermore, the company anticipates non-GAAP operating margin to be in the 4.5-6% band.
Capital expenditures are estimated to lie within $30 million to $40 million, lower than the previously projected range of $40-$50 million.
Zacks Rank and Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
Long-term earnings growth for Adobe, SCIENCE APPLICATIONS INTERNATIONAL and Momo is projected to be 16.20%, 22% and 5%, respectively.
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Stratasys' (SSYS) Q2 Earnings & Revenues Surpass Estimates
Stratasys Ltd. (SSYS - Free Report) reported second-quarter 2018 earnings of 15 cents per share, which topped the Zacks Consensus Estimate of 8 cents. However, the figure was lower than the year-ago figure of 17 cents per share.
Stratasys’ revenues of $170.2 million beat the Zacks Consensus Estimate of $169 million. Also, on a year-over-year basis, the figure increased 0.12%.
Notably, revenues also improved sequentially, driven by a recovery in sales of high-end products, and improvement in demand from government and other key vertical customers like aerospace and automotive, in North America.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. Price, Consensus and EPS Surprise | Stratasys, Ltd. Quote
Quarter Details
Segment wise, Products revenues were down 2.2% from the year-ago quarter to $118.4 million. Within Products revenues, system revenues fell 8.2%. Consumable revenues rallied 4.8%, driven by strong utilization of installed base of systems.
Revenues from Services increased 5.8% year over year to $51.8 million. The rise was primarily attributed to considerable growth in customer support revenues and significant improvement in performance at Stratasys Direct Manufacturing.
Stratasys continued to show its leadership in additive manufacturing by introducing new products that witnessed a strong response, including satisfactory number of Fortus 900 Pro and Fortus 900 Aircraft Interiors Certificate Solution, installed globally.
Furthermore, additional installations of the J700 Dental 3D Printer at dental labs translated into incremental unit sales to customers' installed base and steady recurring revenues from consumables.
Margin
Stratasys’ non-GAAP gross profit declined 0.9% from the year-ago period to $89.4 million. Moreover, non-GAAP gross margin fell 50 basis points (bps) on a year-over-year basis to 52.5% due to product mix.
Non-GAAP operating income totaled $10.6 million, down 4.5% from the year-ago quarter. Operating margin declined 30 bps to 6.2%. Increasing investments in research and development initiatives is an overhang.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $346.7 million compared with $346.5 million at the end of the previous quarter.. As of Jun 30, 2018, long-term debt came in at $24.6 million.
Net cash provided by operating activities in the quarter was $13 million.
Guidance
For full-year 2018, the company reiterated revenue guidance in the range of $670-$700 million.
Non-GAAP earnings per share are projected between 30 cents and 50 cents.
Furthermore, the company anticipates non-GAAP operating margin to be in the 4.5-6% band.
Capital expenditures are estimated to lie within $30 million to $40 million, lower than the previously projected range of $40-$50 million.
Zacks Rank and Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Adobe (ADBE - Free Report) and SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Momo Inc. (MOMO - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Adobe, SCIENCE APPLICATIONS INTERNATIONAL and Momo is projected to be 16.20%, 22% and 5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>