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Stratasys (SSYS - Free Report) reported mixed third-quarter 2022 results, wherein adjusted earnings surpassed the Zacks Consensus Estimate, while revenues fell short of the same. The company’s third-quarter 2022 non-GAAP earnings of 5 cents per share topped the consensus mark of 3 cents and marked a five-fold improvement from the year-ago quarter’s earnings of a penny.
Though the company’s revenues increased 2% year over year to $162.2 million, it fell short of the consensus mark of $164.2 million. The lower-than-expected top line can be primarily attributed to unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were up 3% from the year-ago quarter to $112.1 million. Within Product revenues, System revenues climbed 7.7%, while Consumables revenues declined 1.4% year over year.
Revenues from Services decreased 0.1% year over year to $50.1 million. Within Service revenues, customer support revenues advanced 4.7% year over year.
Stratasys’ non-GAAP gross profit increased 2% from the year-ago period to $76.7 million. Consequently, the non-GAAP gross margin expanded 30 basis points (bps) to 48.5%.
Non-GAAP operating expenses declined marginally to $74.2 million year over year from $74.9 million. As a percentage of revenues, it contracted 130 bps to 45.8%.
The non-GAAP operating income came in at $4.5 million against the year-ago quarter’s loss of $1.8 million. The margin rose by 170 bps to 2.8%. Meanwhile, adjusted EBITDA soared 26.9% to $9.9 million.
Balance Sheet & Other Details
Stratasys exited the third quarter with cash and short-term deposits of $348.7 million compared with the $438.3 million witnessed at the end of the previous quarter.
As of Sep 30, 2022, there was no long-term debt. During the July-September quarter, the company utilized operating cash flow of $18.4 million.
Updated Outlook
For 2022, Stratasys’ management now projects revenues between $648 million and $652 million, down from the earlier range of $675-$685 million. SSYS now anticipates non-GAAP earnings in the range of 9 cents-12 cents per share in 2022, down from the previous guidance range of 14-19 cents.
Stratasys now estimates 2022 operating expenses to increase by $5 to $10 million from the 2021 level, primarily due to the divestiture of MakerBot and improved efficiencies. The company earlier expected an increase of $18 to $23 million, primarily due to investments in new products associated with higher revenues.
For 2022, Stratasys continues to expect the non-GAAP operating margin to be slightly more than 2%. Adjusted EBITDA is now forecast in the band of $34 million-$47 million, down from the earlier expectation in the range of $38-$41 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have plunged 45.5% year to date.
Some better-ranked stocks worth considering from the broader technology sector are Celestica (CLS - Free Report) , Zscaler (ZS - Free Report) and Coupa Software . Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Coupa each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 9.4% up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have increased 1.4% YTD.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 60 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 58.6% YTD.
The Zacks Consensus Estimate for Coupa's fourth-quarter fiscal 2023 earnings has been revised 3 cents northward to 7 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to 44 cents per share in the past 90 days.
Coupa's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 478.1%. Shares of COUP have slumped 66.7% YTD.
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Stratasys (SSYS) Beats Q3 Earnings Estimates, Lags Revenues
Stratasys (SSYS - Free Report) reported mixed third-quarter 2022 results, wherein adjusted earnings surpassed the Zacks Consensus Estimate, while revenues fell short of the same. The company’s third-quarter 2022 non-GAAP earnings of 5 cents per share topped the consensus mark of 3 cents and marked a five-fold improvement from the year-ago quarter’s earnings of a penny.
Though the company’s revenues increased 2% year over year to $162.2 million, it fell short of the consensus mark of $164.2 million. The lower-than-expected top line can be primarily attributed to unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were up 3% from the year-ago quarter to $112.1 million. Within Product revenues, System revenues climbed 7.7%, while Consumables revenues declined 1.4% year over year.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Revenues from Services decreased 0.1% year over year to $50.1 million. Within Service revenues, customer support revenues advanced 4.7% year over year.
Stratasys’ non-GAAP gross profit increased 2% from the year-ago period to $76.7 million. Consequently, the non-GAAP gross margin expanded 30 basis points (bps) to 48.5%.
Non-GAAP operating expenses declined marginally to $74.2 million year over year from $74.9 million. As a percentage of revenues, it contracted 130 bps to 45.8%.
The non-GAAP operating income came in at $4.5 million against the year-ago quarter’s loss of $1.8 million. The margin rose by 170 bps to 2.8%. Meanwhile, adjusted EBITDA soared 26.9% to $9.9 million.
Balance Sheet & Other Details
Stratasys exited the third quarter with cash and short-term deposits of $348.7 million compared with the $438.3 million witnessed at the end of the previous quarter.
As of Sep 30, 2022, there was no long-term debt. During the July-September quarter, the company utilized operating cash flow of $18.4 million.
Updated Outlook
For 2022, Stratasys’ management now projects revenues between $648 million and $652 million, down from the earlier range of $675-$685 million. SSYS now anticipates non-GAAP earnings in the range of 9 cents-12 cents per share in 2022, down from the previous guidance range of 14-19 cents.
Stratasys now estimates 2022 operating expenses to increase by $5 to $10 million from the 2021 level, primarily due to the divestiture of MakerBot and improved efficiencies. The company earlier expected an increase of $18 to $23 million, primarily due to investments in new products associated with higher revenues.
For 2022, Stratasys continues to expect the non-GAAP operating margin to be slightly more than 2%. Adjusted EBITDA is now forecast in the band of $34 million-$47 million, down from the earlier expectation in the range of $38-$41 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have plunged 45.5% year to date.
Some better-ranked stocks worth considering from the broader technology sector are Celestica (CLS - Free Report) , Zscaler (ZS - Free Report) and Coupa Software . Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Coupa each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 9.4% up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have increased 1.4% YTD.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 60 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 58.6% YTD.
The Zacks Consensus Estimate for Coupa's fourth-quarter fiscal 2023 earnings has been revised 3 cents northward to 7 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to 44 cents per share in the past 90 days.
Coupa's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 478.1%. Shares of COUP have slumped 66.7% YTD.