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Stratasys (SSYS) Q1 Earnings and Revenues Surpass Estimates

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Stratasys (SSYS - Free Report) reported first-quarter 2022 non-GAAP earnings of 2 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of 4 cents per share. The bottom line came in higher than the year-ago quarter’s loss of 6 cents per share.

The company’s revenues jumped 22% year over year to $163.4 million and surpassed the consensus mark of $157.8 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 25.2% from the year-ago quarter to $113.1 million. Within Product revenues, System revenues climbed 36.7%, while Consumables revenues jumped 16.1% year over year.

Stratasys, Ltd. Price, Consensus and EPS Surprise

Stratasys, Ltd. Price, Consensus and EPS Surprise

Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote

Revenues from Services increased 14.8% year on year to $50.4 million. Within Service revenues, customer support revenues advanced 10.1% year over year.

Stratasys’ non-GAAP gross profit increased 14.8% from the year-ago period to $77.4 million. Consequently, non-GAAP gross margin expanded 60 basis points (bps) to 47.3%.

Non-GAAP operating expenses flared up 15.5% year on year to $75.3 million. As a percentage of revenues, it contracted 250 bps to 46.1%. Non-GAAP operating income of $2 million against the year-ago quarter’s loss of $2.6 million. However, the margin rose by 310 bps to 1.2%.

Adjusted EBITDA soared 131.4% to $8.1 million.

Balance Sheet & Other Details

The company exited the first quarter with cash and short-term deposits of $475.6 million compared with the $502.2 million witnessed at the end of the previous quarter.

As of Mar 31, 2022, there was no long-term debt.

During the January-March quarter, the company utilized an operating cash flow of $16.1 million.

Outlook

For 2022, management projects revenues between $685 million and $695 million. Stratasys anticipates non-GAAP earnings in the range of 14 cents to 19 cents per share in 2022.

Stratasys estimates 2022 operating expenses to increase by $20-$25 million from the 2021 level, primarily 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.

Zacks Rank & Key Picks

Stratasys currently carry a Zacks Rank #3 (Hold). Shares of SSYS have declined 15.6% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Axcelis Technologies (ACLS - Free Report) and Analog Devices (ADI - Free Report) . While Avnet sports a Zacks Rank #1 (Strong Buy), Axcelis and Analog Devices carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.

Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 7% in the past year.

The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.

Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 47.8% in the past year.

The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 6.3% in the past year.