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Stratasys (SSYS) Up 3.8% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Stratasys Q4 Earnings and Revenues Beat Estimates
Stratasys 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 25% due to these changes.
VGM Scores
At this time, Stratasys has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Stratasys has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Stratasys (SSYS) Up 3.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Stratasys (SSYS - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Stratasys Q4 Earnings and Revenues Beat Estimates
Stratasys 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 25% due to these changes.
VGM Scores
At this time, Stratasys has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Stratasys has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.