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Stratasys (SSYS) Q3 Earnings & Revenues Top Estimates, Up Y/Y
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Stratasys (SSYS - Free Report) came up with impressive third-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 non-GAAP earnings of a penny per share, which fared better than the year-ago quarter’s loss of 5 cents as well as the Zacks Consensus Estimate of loss of 8 cents per share.
Stratasys’ revenues jumped 24.3%, year over year, to $159 million and outpaced the consensus mark of $150.5 million. This year-over-year growth in the top line reflects strength in the Systems and Consumables performance.
Quarter in Detail
Segmentwise, Product revenues were up 30.3% from the year-ago quarter to $108.9 million. Within Product revenues, System revenues climbed 34.7%,and Consumables revenues jumped 26.6% year over year.
Revenues from Services increased 13% year on year to $50.1 million. Within Service revenues, customer support revenues advanced 7.2%, year over year.
Stratasys’ non-GAAP gross profit increased 16.9% from the year-ago period to $76.7million. The non-GAAP gross margin expanded 140 basis points (bps) to 48.2%, mainly driven by a higher mix of Systems and Consumables revenues in sales. However, the company saw rising logistic costs and product-introduction related expenses continued to hurt the gross margin.
The non-GAAP operating expenses flared up 23.2%, year on year, to $74.9 million. However, as a percentage of revenues, it shrunk 50 bps to 47.1%. The company’s cost-containment efforts helped minimize expenses as a percentage of revenues.
The non-GAAP operating income totaled $1.8 million compared with the operating loss of $1 million seen in the prior-year quarter.
The company exited the third quarter with cash and short-term deposits of $308.2 million compared with the $522.7 million witnessed at the end of the previous quarter.
As of Sep 30, 2021, there was no long-term debt.
During the July-September quarter, the company generated operating cash flow of $3 million.
Business Outlook
For the fourth quarter, management projects revenues to be up approximately 16% on a year-over-year basis.
Furthermore, Stratasys estimates the 2021 operating expenses to flare up $36 million from the 2020 level, chiefly due to fully owning Xaar 3D and elevated operating costs associated with higher revenues.
Zacks Rank &Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold).
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Stratasys (SSYS) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Stratasys (SSYS - Free Report) came up with impressive third-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 non-GAAP earnings of a penny per share, which fared better than the year-ago quarter’s loss of 5 cents as well as the Zacks Consensus Estimate of loss of 8 cents per share.
Stratasys’ revenues jumped 24.3%, year over year, to $159 million and outpaced the consensus mark of $150.5 million. This year-over-year growth in the top line reflects strength in the Systems and Consumables performance.
Quarter in Detail
Segmentwise, Product revenues were up 30.3% from the year-ago quarter to $108.9 million. Within Product revenues, System revenues climbed 34.7%,and Consumables revenues jumped 26.6% year over year.
Revenues from Services increased 13% year on year to $50.1 million. Within Service revenues, customer support revenues advanced 7.2%, year over year.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Stratasys’ non-GAAP gross profit increased 16.9% from the year-ago period to $76.7million. The non-GAAP gross margin expanded 140 basis points (bps) to 48.2%, mainly driven by a higher mix of Systems and Consumables revenues in sales. However, the company saw rising logistic costs and product-introduction related expenses continued to hurt the gross margin.
The non-GAAP operating expenses flared up 23.2%, year on year, to $74.9 million. However, as a percentage of revenues, it shrunk 50 bps to 47.1%. The company’s cost-containment efforts helped minimize expenses as a percentage of revenues.
The non-GAAP operating income totaled $1.8 million compared with the operating loss of $1 million seen in the prior-year quarter.
The company exited the third quarter with cash and short-term deposits of $308.2 million compared with the $522.7 million witnessed at the end of the previous quarter.
As of Sep 30, 2021, there was no long-term debt.
During the July-September quarter, the company generated operating cash flow of $3 million.
Business Outlook
For the fourth quarter, management projects revenues to be up approximately 16% on a year-over-year basis.
Furthermore, Stratasys estimates the 2021 operating expenses to flare up $36 million from the 2020 level, chiefly due to fully owning Xaar 3D and elevated operating costs associated with higher revenues.
Zacks Rank &Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Broadcom (AVGO - Free Report) and Perficient (PRFT - Free Report) , 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 Applied Materials, Broadcom and Perficient is currently pegged at 19.4%, 15% and 18%, respectively.