Stratasys Ltd. (SSYS - Free Report) reported first-quarter 2020 non-GAAP loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 6 cents. Moreover, the bottom line was much lower than the year-ago quarter's reported earnings of 10 cents.
Further, Stratasys’ revenues of $133 million missed the consensus mark of $137 million and declined 14.4% year over year.
Economic weakness due to the outbreak of the coronavirus pandemic affected the top line.
Moreover, the company withdrew its 2020 guidance, considering the uncertainty caused by the pandemic.
However, an increase in demand for 3D printed medical equipment was a tailwind.
Quarter Details
Segment-wise, Product revenues fell 20.9% from the year-ago quarter to $83.2 million. The figure was down 20.3% in constant currency.
Within Product revenues, System revenues decreased 39.5% and Consumables revenues fell 5.8% year over year, on a reported basis.
Notably, the adoption of PolyJet and FDM printers was strong.
Revenues from Services decreased 0.9% on a reported basis and 0.6% in constant currency to $49.7 million. However, within Service revenues, customer support revenues grew 2.2% year over year.
Margin
Stratasys’ non-GAAP gross profit decreased 20.3% from the year-ago quarter to $64.3 million. Non-GAAP gross margin contracted 360 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined 1.6% year over year to $72.7 million, driven by efforts to cut SG&A costs.
Non-GAAP operating loss totaled $8.4 million against an operating income of $6.8 million in the prior-year quarter.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $325.5 million compared with $321.8 million at the end of the previous quarter.
As of Mar 31, 2020, there was no long-term debt.
Net cash used in operating activities in the quarter was $11.3 million.
Outlook
The company’s cost-control initiatives are expected to reflect more vividly on expenses in the second quarter of 2020.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Anaplan, Inc. , NVIDIA (NVDA - Free Report) and Nutanix (NTNX - Free Report) are some better-ranked stocks in the broader computer and technology sector. While AudioEye sports a Zacks Rank #1 (Strong Buy), NVIDIA and Nutanix carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anaplan, NVIDIA and Nutanix are set to report quarterly results on May 26, 21 and 27, respectively.
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Stratasys Ltd. (SSYS - Free Report) reported first-quarter 2020 non-GAAP loss of 19 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 6 cents. Moreover, the bottom line was much lower than the year-ago quarter's reported earnings of 10 cents.
Further, Stratasys’ revenues of $133 million missed the consensus mark of $137 million and declined 14.4% year over year.
Economic weakness due to the outbreak of the coronavirus pandemic affected the top line.
Moreover, the company withdrew its 2020 guidance, considering the uncertainty caused by the pandemic.
However, an increase in demand for 3D printed medical equipment was a tailwind.
Quarter Details
Segment-wise, Product revenues fell 20.9% from the year-ago quarter to $83.2 million. The figure was down 20.3% in constant currency.
Within Product revenues, System revenues decreased 39.5% and Consumables revenues fell 5.8% year over year, on a reported basis.
Notably, the adoption of PolyJet and FDM printers was strong.
Revenues from Services decreased 0.9% on a reported basis and 0.6% in constant currency to $49.7 million. However, within Service revenues, customer support revenues grew 2.2% year over year.
Margin
Stratasys’ non-GAAP gross profit decreased 20.3% from the year-ago quarter to $64.3 million. Non-GAAP gross margin contracted 360 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined 1.6% year over year to $72.7 million, driven by efforts to cut SG&A costs.
Non-GAAP operating loss totaled $8.4 million against an operating income of $6.8 million in the prior-year quarter.
Balance Sheet and Cash Flow
The company exited the quarter with cash and cash equivalents of $325.5 million compared with $321.8 million at the end of the previous quarter.
As of Mar 31, 2020, there was no long-term debt.
Net cash used in operating activities in the quarter was $11.3 million.
Outlook
The company’s cost-control initiatives are expected to reflect more vividly on expenses in the second quarter of 2020.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Anaplan, Inc. , NVIDIA (NVDA - Free Report) and Nutanix (NTNX - Free Report) are some better-ranked stocks in the broader computer and technology sector. While AudioEye sports a Zacks Rank #1 (Strong Buy), NVIDIA and Nutanix carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anaplan, NVIDIA and Nutanix are set to report quarterly results on May 26, 21 and 27, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
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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