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Stratasys (SSYS) Down 5% on Wider-Than-Expected Loss in Q3
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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.
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).
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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Stratasys (SSYS) Down 5% on Wider-Than-Expected Loss in Q3
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.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
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 >>