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Stratasys (SSYS) Q4 Earnings and Revenues Miss Estimates
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Stratasys (SSYS - Free Report) reported fourth-quarter 2023 non-GAAP earnings of 2 cents per share, which missed the Zacks Consensus Estimate by 50% and declined 71.4% year over year.
The company’s revenues dipped 1.8% year over year to $156.3 million and missed the consensus mark by 2.93%. Top-line growth was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Segment-wise, Product revenues decreased 0.7% from the year-ago quarter to $110.4 million. Within Product revenues, System revenues declined 13.7% year over year to $47.4 million, while Consumables revenues increased 11.9% year over year to $63 million.
Revenues from Services decreased 4.6% year over year to $45.9 million. Within Service revenues, Customer Support revenues advanced 1.6% year over year to $30.7 million.
Stratasys’ non-GAAP gross profit decreased 1% from the year-ago period to $76.32 million. The non-GAAP gross margin expanded 40 basis points (bps) to 48.8%.
Non-GAAP operating expenses increased 3.2% year over year to $74.3 million.
The non-GAAP operating income came in at $2.02 million, down 60.1% year over year. The margin contracted 190 bps to 1.3%. Also, adjusted EBITDA declined 28% to $7.7 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $184.5 million compared with $184.5 million reported at the end of the previous quarter.
During the December-ended quarter, the company utilized an operating cash flow of $7.7 million compared with $18.1 million reported in the prior-year quarter.
2024 Outlook
For 2024, management projects revenues between $630 million and $645 million, and non-GAAP earnings of 12-19 cents per share. The company projects a gross margin between 49% and 49.5%. The non-GAAP operating margin is expected to be 2.5-3.5%.
Stratasys estimates 2024 non-operating expenses of $292-$297 million. Adjusted EBITDA is forecast to be $40-$45 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold). SSYS shares have lost 12.4% year to date.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, suggesting year-over-year growth of 79.2%. The long-term estimated earnings growth rate is 29.7%. Shares of NVDA have surged 79.4% year to date.
The consensus mark for Meta Platform’s 2024 earnings has been revised upward by 39 cents to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. META stock has jumped 40.4% year to date.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 4 cents to $4.06 per share in the past 30 days, indicating an increase of 40% on a year-over-year basis. The long-term estimated earnings growth rate is 28.1%. AMZN stock has returned 14.2% year to date.
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Stratasys (SSYS) Q4 Earnings and Revenues Miss Estimates
Stratasys (SSYS - Free Report) reported fourth-quarter 2023 non-GAAP earnings of 2 cents per share, which missed the Zacks Consensus Estimate by 50% and declined 71.4% year over year.
The company’s revenues dipped 1.8% year over year to $156.3 million and missed the consensus mark by 2.93%. Top-line growth was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Quarter in Detail
Segment-wise, Product revenues decreased 0.7% from the year-ago quarter to $110.4 million. Within Product revenues, System revenues declined 13.7% year over year to $47.4 million, while Consumables revenues increased 11.9% year over year to $63 million.
Revenues from Services decreased 4.6% year over year to $45.9 million. Within Service revenues, Customer Support revenues advanced 1.6% year over year to $30.7 million.
Stratasys’ non-GAAP gross profit decreased 1% from the year-ago period to $76.32 million. The non-GAAP gross margin expanded 40 basis points (bps) to 48.8%.
Non-GAAP operating expenses increased 3.2% year over year to $74.3 million.
The non-GAAP operating income came in at $2.02 million, down 60.1% year over year. The margin contracted 190 bps to 1.3%. Also, adjusted EBITDA declined 28% to $7.7 million.
Balance Sheet & Other Details
Stratasys exited the fourth quarter with cash and short-term deposits of $184.5 million compared with $184.5 million reported at the end of the previous quarter.
During the December-ended quarter, the company utilized an operating cash flow of $7.7 million compared with $18.1 million reported in the prior-year quarter.
2024 Outlook
For 2024, management projects revenues between $630 million and $645 million, and non-GAAP earnings of 12-19 cents per share. The company projects a gross margin between 49% and 49.5%. The non-GAAP operating margin is expected to be 2.5-3.5%.
Stratasys estimates 2024 non-operating expenses of $292-$297 million. Adjusted EBITDA is forecast to be $40-$45 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold). SSYS shares have lost 12.4% year to date.
Some better-ranked stocks from the broader Computer and Technology sector are NVIDIA Corporation (NVDA - Free Report) , Meta Platforms (META - Free Report) and Amazon.com (AMZN - Free Report) . NVIDIA and Meta Platforms sport a Zacks Rank #1 (Strong Buy) each, and Amazon carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 earnings has been revised 16.4% upward to $23.22 per share in the past 30 days, suggesting year-over-year growth of 79.2%. The long-term estimated earnings growth rate is 29.7%. Shares of NVDA have surged 79.4% year to date.
The consensus mark for Meta Platform’s 2024 earnings has been revised upward by 39 cents to $19.94 per share over the past 30 days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. META stock has jumped 40.4% year to date.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 4 cents to $4.06 per share in the past 30 days, indicating an increase of 40% on a year-over-year basis. The long-term estimated earnings growth rate is 28.1%. AMZN stock has returned 14.2% year to date.