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Stratasys' (SSYS) Loss Narrows in Q2, Revenues Climb 25% Y/Y
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Stratasys (SSYS - Free Report) came up with impressive second-quarter 2021 results, wherein the top and bottom lines surpassed the respective Zacks Consensus Estimate and marked significant year-over-year improvements as well. The 3D maker posted a non-GAAP net loss of 2 cents per share, narrower than the year-ago quarter’s loss of 13 cents. The bottom-line result also came in narrower than the Zacks Consensus Estimate of loss of 9 cents per share.
Stratasys’ revenues jumped 25% year over year to $147 million and outpaced the consensus mark of $135.9 million. This year-over-year growth in the top line reflects strength in Systems and Consumables performance.
Stratasys’s chief executive officer Dr. YoavZeif said, "Our strong second quarter results were highlighted by a 25% year over year revenue improvement with growth from all regions and all business lines. Our focus on manufacturing gained further traction, we increased the monetization and ecosystem partnerships of our software business, and we expanded our medical and dental offerings, advancing our plans for further penetration in the healthcare industry."
Segment wise, Product revenues were up 35.8% from the year-ago quarter to $100.3 million. Within Product revenues, System revenues climbed 32%, and Consumables revenues jumped 39% year over year.
Revenues from Services increased 6.8% year on year to $46.7 million. Within Service revenues, customer support revenues advanced 10%, year over year.
Stratasys’ non-GAAP gross profit increased 16.6% from the year-ago period to $69.9 million. Non-GAAP gross margin expanded 210 basis points (bps) to 47.5%, mainly driven by higher mix of Systems and Consumables revenues in the sales. However, the company noted rising logistics costs and product-introduction related expenses that hurt the gross margin.
Non-GAAP operating expenses flared up 18.1% year on year to $72.5 million. However, as a percentage of revenues, it shrunk 290 bps to 49.3%. The company’s cost-containment efforts helped minimize expenses as a percentage of revenues.
Non-GAAP operating loss totaled $2.6 million compared with the operating loss of $8.1 million seen in the prior-year quarter.
The company exited the second quarter with cash and short-term deposits of $522.7 million compared with the $530.4 million witnessed at the end of the previous quarter.
As of Jun 30, 2021, there was no long-term debt.
During the April-June quarter, the company generated operating cash flow of $5.6 million.
Business Outlook
For the third quarter, management projects revenues to be up in the 17-18% range on a year-over-year basis.
Furthermore, Stratasys estimates 2021 operating expenses to flare up $30 million from the 2020 level, chiefly due to its return to the five-day-work week from the four-day strategy and gradual recovery of end markets.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold).
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Stratasys' (SSYS) Loss Narrows in Q2, Revenues Climb 25% Y/Y
Stratasys (SSYS - Free Report) came up with impressive second-quarter 2021 results, wherein the top and bottom lines surpassed the respective Zacks Consensus Estimate and marked significant year-over-year improvements as well. The 3D maker posted a non-GAAP net loss of 2 cents per share, narrower than the year-ago quarter’s loss of 13 cents. The bottom-line result also came in narrower than the Zacks Consensus Estimate of loss of 9 cents per share.
Stratasys’ revenues jumped 25% year over year to $147 million and outpaced the consensus mark of $135.9 million. This year-over-year growth in the top line reflects strength in Systems and Consumables performance.
Stratasys’s chief executive officer Dr. YoavZeif said, "Our strong second quarter results were highlighted by a 25% year over year revenue improvement with growth from all regions and all business lines. Our focus on manufacturing gained further traction, we increased the monetization and ecosystem partnerships of our software business, and we expanded our medical and dental offerings, advancing our plans for further penetration in the healthcare industry."
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Quarter in Detail
Segment wise, Product revenues were up 35.8% from the year-ago quarter to $100.3 million. Within Product revenues, System revenues climbed 32%, and Consumables revenues jumped 39% year over year.
Revenues from Services increased 6.8% year on year to $46.7 million. Within Service revenues, customer support revenues advanced 10%, year over year.
Stratasys’ non-GAAP gross profit increased 16.6% from the year-ago period to $69.9 million. Non-GAAP gross margin expanded 210 basis points (bps) to 47.5%, mainly driven by higher mix of Systems and Consumables revenues in the sales. However, the company noted rising logistics costs and product-introduction related expenses that hurt the gross margin.
Non-GAAP operating expenses flared up 18.1% year on year to $72.5 million. However, as a percentage of revenues, it shrunk 290 bps to 49.3%. The company’s cost-containment efforts helped minimize expenses as a percentage of revenues.
Non-GAAP operating loss totaled $2.6 million compared with the operating loss of $8.1 million seen in the prior-year quarter.
The company exited the second quarter with cash and short-term deposits of $522.7 million compared with the $530.4 million witnessed at the end of the previous quarter.
As of Jun 30, 2021, there was no long-term debt.
During the April-June quarter, the company generated operating cash flow of $5.6 million.
Business Outlook
For the third quarter, management projects revenues to be up in the 17-18% range on a year-over-year basis.
Furthermore, Stratasys estimates 2021 operating expenses to flare up $30 million from the 2020 level, chiefly due to its return to the five-day-work week from the four-day strategy and gradual recovery of end markets.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) and Texas Instruments (TXN - Free Report) , all carrying a Zacks Rank of 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 Microsoft, Cadence Design and Texas Instruments is currently pegged at 11.5%, 11.7% and 9.3%, respectively.