Shares of Stratasys Ltd. (SSYS - Free Report) depreciated 4.9% on Thursday after the 3D printer hardware and software solution provider reported a wider-than-expected loss for third-quarter 2020.
The company reported non-GAAP loss of 5 cents per share in the third quarter, wider than the Zacks Consensus Estimate of a loss of 4 cents. Moreover, the company had recorded earnings per share of 12 cents per share in the year-ago quarter.
Stratasys’ revenues of $127.9 million also declined 18.8% year over year. The revenue figure, however, surpassed the consensus mark of $122.5 million. This year-over-year decline in the top line reflects the adverse impact of the COVID-19 pandemic which has dampened the demand for its products and services.
Quarter Details
Segment wise, Product revenues were down 21.4% from the year-ago quarter to $83.5 million. Within Product revenues, System revenues decreased 20.8% and Consumables revenues fell 22% year over year.
Revenues from Services decreased 13.2% year over year to $44.3 million. Within Service revenues, customer support revenues dropped 1.6% year over year.
Stratasys’ non-GAAP gross profit dipped 22.7% from the year-ago quarter to $59.8 million. Non-GAAP gross margin contracted 560 basis points (bps) to 46.8%.
Non-GAAP operating expenses slid 18.3% year over year to $60.8 million, on management’s efforts to cut SG&A costs.
Non-GAAP operating loss totaled $1 million against the operating income of $8.1 million recorded in the prior-year quarter.
The company exited the third quarter with cash and cash equivalents of $308 million compared with the $313 million witnessed at the end of the previous quarter.
As of Sep 30, 2020, there was no long-term debt.
During the July-September quarter, the company generated operating cash flow of $2.6 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include Arrow Electronics (ARW - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Covetrus, Inc. , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Arrow, NVIDIA and Covetrus is currently pegged at 8.5%, 20.1%, and 31.6%, respectively.
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Shares of Stratasys Ltd. (SSYS - Free Report) depreciated 4.9% on Thursday after the 3D printer hardware and software solution provider reported a wider-than-expected loss for third-quarter 2020.
The company reported non-GAAP loss of 5 cents per share in the third quarter, wider than the Zacks Consensus Estimate of a loss of 4 cents. Moreover, the company had recorded earnings per share of 12 cents per share in the year-ago quarter.
Stratasys’ revenues of $127.9 million also declined 18.8% year over year. The revenue figure, however, surpassed the consensus mark of $122.5 million. This year-over-year decline in the top line reflects the adverse impact of the COVID-19 pandemic which has dampened the demand for its products and services.
Quarter Details
Segment wise, Product revenues were down 21.4% from the year-ago quarter to $83.5 million. Within Product revenues, System revenues decreased 20.8% and Consumables revenues fell 22% year over year.
Revenues from Services decreased 13.2% year over year to $44.3 million. Within Service revenues, customer support revenues dropped 1.6% year over year.
Stratasys’ non-GAAP gross profit dipped 22.7% from the year-ago quarter to $59.8 million. Non-GAAP gross margin contracted 560 basis points (bps) to 46.8%.
Non-GAAP operating expenses slid 18.3% year over year to $60.8 million, on management’s efforts to cut SG&A costs.
Non-GAAP operating loss totaled $1 million against the operating income of $8.1 million recorded in the prior-year quarter.
The company exited the third quarter with cash and cash equivalents of $308 million compared with the $313 million witnessed at the end of the previous quarter.
As of Sep 30, 2020, there was no long-term debt.
During the July-September quarter, the company generated operating cash flow of $2.6 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader technology sector include Arrow Electronics (ARW - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Covetrus, Inc. , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Arrow, NVIDIA and Covetrus is currently pegged at 8.5%, 20.1%, and 31.6%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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