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Stratasys (SSYS) Stock Soars 5% as Q4 Earnings Beat Estimates
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Stratasys (SSYS - Free Report) shares rose 4.7% on Thursday after the 3D printing solution provider reported better-than-expected fourth-quarter 2022 results. The company’s fourth-quarter 2022 non-GAAP earnings of 7 cents per share topped the consensus mark of 2 cents and marked a seven-fold improvement from the year-ago quarter’s earnings of a penny.
Though the company’s revenues declined 4.6% year over year to $159.3 million, the same came ahead of the consensus mark of $157.2 million. The year-over-year decline in the top line can be primarily attributed to the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were down 5.8% from the year-ago quarter to $111.2 million, primarily due to the divestiture and negative impact of foreign exchange rates. Within Product revenues, System revenues declined 11.1% to $54.9 million, while Consumables revenues were flat at $56.3 million.
Revenues from Services decreased 1.9% year over year to $48.1 million. Within Service revenues, customer support revenues advanced 1.9% year over year.
Stratasys’ non-GAAP gross profit decreased 4.2% from the year-ago period to $77.1 million. Consequently, the non-GAAP gross margin contracted 30 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined to $72 million year over year from $79.6 million. As a percentage of revenues, the same contracted 250 bps to 45.2%.
The non-GAAP operating income came in at $5.1 million compared with the year-ago quarter’s income of $1.7 million. The margin rose by 220 bps to 3.2%. Meanwhile, adjusted EBITDA soared 35.4% to $10.7 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $327.8 million compared with the $348.7 million witnessed at the end of the previous quarter.
As of Dec 31, 2022, there was no long-term debt. During the October-December quarter, the company utilized operating cash flow of $18.1 million.
FY23 Outlook
For 2023, Stratasys’ management projects revenues between $620 million and $670 and non-GAAP earnings in the range of 12-24 cents per share. The company projects a gross margin between 48% and 49% and the non-GAAP operating margin in the range of 2.5%-3.5%.
Stratasys estimates 2023 operating expenses in the range of $290-$300 million. Adjusted EBITDA is forecast in the band of $35-$50 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have plunged 39.8% over the past year.
The Zacks Consensus Estimate for Clarivate’s first-quarter 2023 earnings has been revised a penny northward to 17 cents per share over the past 60 days. For 2023, earnings estimates have been revised a penny northward to 80 cents per share in the past 60 days.
Clarivate's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.6%. Shares of CLVT have fallen 20.7% in the trailing 12 months.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has been revised upward by 17 cents to $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 30 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 48.8% over the past year.
The Zacks Consensus Estimate for ServiceNow's first-quarter 2023 earnings has been revised northward by a penny to $2.02 per share over the past 30 days. For 2023, earnings estimates have moved downward by 3 cents to $9.15 per share in the past seven days.
ServiceNow's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.9%. Shares of NOW have plunged 25.7% in the trailing 12 months.
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Stratasys (SSYS) Stock Soars 5% as Q4 Earnings Beat Estimates
Stratasys (SSYS - Free Report) shares rose 4.7% on Thursday after the 3D printing solution provider reported better-than-expected fourth-quarter 2022 results. The company’s fourth-quarter 2022 non-GAAP earnings of 7 cents per share topped the consensus mark of 2 cents and marked a seven-fold improvement from the year-ago quarter’s earnings of a penny.
Though the company’s revenues declined 4.6% year over year to $159.3 million, the same came ahead of the consensus mark of $157.2 million. The year-over-year decline in the top line can be primarily attributed to the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were down 5.8% from the year-ago quarter to $111.2 million, primarily due to the divestiture and negative impact of foreign exchange rates. Within Product revenues, System revenues declined 11.1% to $54.9 million, while Consumables revenues were flat at $56.3 million.
Revenues from Services decreased 1.9% year over year to $48.1 million. Within Service revenues, customer support revenues advanced 1.9% 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 decreased 4.2% from the year-ago period to $77.1 million. Consequently, the non-GAAP gross margin contracted 30 basis points (bps) to 48.4%.
Non-GAAP operating expenses declined to $72 million year over year from $79.6 million. As a percentage of revenues, the same contracted 250 bps to 45.2%.
The non-GAAP operating income came in at $5.1 million compared with the year-ago quarter’s income of $1.7 million. The margin rose by 220 bps to 3.2%. Meanwhile, adjusted EBITDA soared 35.4% to $10.7 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $327.8 million compared with the $348.7 million witnessed at the end of the previous quarter.
As of Dec 31, 2022, there was no long-term debt. During the October-December quarter, the company utilized operating cash flow of $18.1 million.
FY23 Outlook
For 2023, Stratasys’ management projects revenues between $620 million and $670 and non-GAAP earnings in the range of 12-24 cents per share. The company projects a gross margin between 48% and 49% and the non-GAAP operating margin in the range of 2.5%-3.5%.
Stratasys estimates 2023 operating expenses in the range of $290-$300 million. Adjusted EBITDA is forecast in the band of $35-$50 million.
Zacks Rank & Stocks to Consider
Stratasys currently carries a Zacks Rank #3 (Hold). Shares of SSYS have plunged 39.8% over the past year.
Some better-ranked stocks from the broader technology sector are Clarivate Plc (CLVT - Free Report) , Aspen Technology (AZPN - Free Report) and ServiceNow (NOW - Free Report) , each 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 Zacks Consensus Estimate for Clarivate’s first-quarter 2023 earnings has been revised a penny northward to 17 cents per share over the past 60 days. For 2023, earnings estimates have been revised a penny northward to 80 cents per share in the past 60 days.
Clarivate's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.6%. Shares of CLVT have fallen 20.7% in the trailing 12 months.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has been revised upward by 17 cents to $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 30 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 48.8% over the past year.
The Zacks Consensus Estimate for ServiceNow's first-quarter 2023 earnings has been revised northward by a penny to $2.02 per share over the past 30 days. For 2023, earnings estimates have moved downward by 3 cents to $9.15 per share in the past seven days.
ServiceNow's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.9%. Shares of NOW have plunged 25.7% in the trailing 12 months.