Stratasys (SSYS - Free Report) reported fourth-quarter 2021 non-GAAP earnings of a penny per share in contrast to the Zacks Consensus Estimate of a loss of a penny per share. The bottom line came in lower than the year-ago quarter’s earnings of 13 cents per share.
The company’s revenues jumped 17.3% year over year to $167 million and surpassed the consensus mark of $165.4 million. This year-over-year top-line growth was driven by strength in the Systems performance.
Quarter in Detail
Segment-wise, Product revenues were up 19% from the year-ago quarter to $118 million. Within Product revenues, System revenues climbed 25.9% and Consumables revenues jumped 12.3% year over year.
Revenues from Services increased 13.3% year on year to $49 million. Within Service revenues, customer support revenues advanced 7% year over year.
Stratasys’ non-GAAP gross profit increased 10.8% from the year-ago period to $81.3 million. However, non-GAAP gross margin contracted 80 basis points (bps) to 48.7%, mainly due to raw material inflation and rising logistic costs. This was partially offset by a higher mix of Systems and Consumables revenues in sales.
Non-GAAP operating expenses flared up 28% year on year to $79.6 million. As a percentage of revenues, it expanded 40 bps to 47.7%. The increase was mainly driven by factors like a return to five-day work with higher expenses, higher operating costs and commissions due to more revenues and Xaar 3D acquisition-related expenses in the fourth quarter.
Non-GAAP operating income of $1.7 million was down 6.6% from the year-ago quarter’s $8.3 million. Consequently, the margin also fell by 490 bps to 1%.
Adjusted EBITDA plunged 45.9% to $7.9 million.
Balance Sheet & Other Details
The company exited the fourth quarter with cash and short-term deposits of $502.2 million compared with the $308.2 million witnessed at the end of the previous quarter.
As of Dec 31, 2021, there was no long-term debt.
During the October-December quarter, the company generated an operating cash flow of $4.4 million. In full-year 2021, Stratasys generated $35.8 million worth of cash from operations.
Full-Year Highlights
For full-year 2021, Stratasys reported revenues of $607.2 million, up 16.6% year over year.
The company reported a non-GAAP loss of 7 cents per share compared with the prior-year quarter’s loss of 25 cents per share.
Non-GAAP gross profit surged 42.5% to $290.5 million and the margin expanded 20 bps to 47.8.
Non-GAAP operating loss was $1.7 million compared with 2020’s loss of $9.1 million. Adjusted EBITDA was $22.6 million.
Outlook
For 2022, management projects revenues between $680 million and $695 million. Stratasys anticipates non-GAAP earnings in the range of 14 to 19 cents per share in 2022.
Stratasys estimates 2022 operating expenses to increase by $20-$25 million from the 2021 level, chiefly due to the ongoing investments in new products associated with higher revenues.
For 2022, Stratasys expects the non-GAAP operating margin to be slightly above 2%, with small losses in the first half and profitable contributions in the second half of the year.
Adjusted EBITDA is forecast in the band of $38-$41 million.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) and Axcelis Technologies (ACLS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 32.3% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 74.6% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past seven days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have gained 1.8% in the past year.
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Stratasys (SSYS - Free Report) reported fourth-quarter 2021 non-GAAP earnings of a penny per share in contrast to the Zacks Consensus Estimate of a loss of a penny per share. The bottom line came in lower than the year-ago quarter’s earnings of 13 cents per share.
The company’s revenues jumped 17.3% year over year to $167 million and surpassed the consensus mark of $165.4 million. This year-over-year top-line growth was driven by strength in the Systems performance.
Quarter in Detail
Segment-wise, Product revenues were up 19% from the year-ago quarter to $118 million. Within Product revenues, System revenues climbed 25.9% and Consumables revenues jumped 12.3% year over year.
Revenues from Services increased 13.3% year on year to $49 million. Within Service revenues, customer support revenues advanced 7% year over year.
Stratasys’ non-GAAP gross profit increased 10.8% from the year-ago period to $81.3 million. However, non-GAAP gross margin contracted 80 basis points (bps) to 48.7%, mainly due to raw material inflation and rising logistic costs. This was partially offset by a higher mix of Systems and Consumables revenues in sales.
Non-GAAP operating expenses flared up 28% year on year to $79.6 million. As a percentage of revenues, it expanded 40 bps to 47.7%. The increase was mainly driven by factors like a return to five-day work with higher expenses, higher operating costs and commissions due to more revenues and Xaar 3D acquisition-related expenses in the fourth quarter.
Non-GAAP operating income of $1.7 million was down 6.6% from the year-ago quarter’s $8.3 million. Consequently, the margin also fell by 490 bps to 1%.
Adjusted EBITDA plunged 45.9% to $7.9 million.
Balance Sheet & Other Details
The company exited the fourth quarter with cash and short-term deposits of $502.2 million compared with the $308.2 million witnessed at the end of the previous quarter.
As of Dec 31, 2021, there was no long-term debt.
During the October-December quarter, the company generated an operating cash flow of $4.4 million. In full-year 2021, Stratasys generated $35.8 million worth of cash from operations.
Full-Year Highlights
For full-year 2021, Stratasys reported revenues of $607.2 million, up 16.6% year over year.
The company reported a non-GAAP loss of 7 cents per share compared with the prior-year quarter’s loss of 25 cents per share.
Non-GAAP gross profit surged 42.5% to $290.5 million and the margin expanded 20 bps to 47.8.
Non-GAAP operating loss was $1.7 million compared with 2020’s loss of $9.1 million. Adjusted EBITDA was $22.6 million.
Outlook
For 2022, management projects revenues between $680 million and $695 million. Stratasys anticipates non-GAAP earnings in the range of 14 to 19 cents per share in 2022.
Stratasys estimates 2022 operating expenses to increase by $20-$25 million from the 2021 level, chiefly due to the ongoing investments in new products associated with higher revenues.
For 2022, Stratasys expects the non-GAAP operating margin to be slightly above 2%, with small losses in the first half and profitable contributions in the second half of the year.
Adjusted EBITDA is forecast in the band of $38-$41 million.
Zacks Rank & Key Picks
Stratasys currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) and Axcelis Technologies (ACLS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 32.3% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 74.6% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past seven days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have gained 1.8% in the past year.
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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