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Stratasys' Q3 Earnings Beat Estimates, Revenues Fall Y/Y

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Stratasys (SSYS - Free Report) reported third-quarter 2024 earnings of 1 cent per share in contrast to the Zacks Consensus Estimate of a loss of 2 cents per share. The company had posted non-GAAP earnings of 4 cents per share in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 37.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Quarterly revenues fell 13.6% year over year to $140 million and missed the consensus mark by 3.08%. The top line was impacted by the current macroeconomic environment on customer capital equipment spending.

Stratasys, Ltd. Price, Consensus and EPS Surprise

Stratasys, Ltd. Price, Consensus and EPS Surprise

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

Stratasys’ shares have lost 29.3% year to date against the Zacks Computer & Technology sector’s growth of 30%.

Stratasys’ Q3 Release in Details

Segment-wise, Product revenues declined 16.9% from the year-ago quarter’s figure to $94.1 million. Within Product revenues, System revenues plunged 38.4% year over year to $31.7 million. Consumables revenues increased 1% year over year to $62.4 million.

Revenues from Services declined 6.1% year over year to $45.9 million. Within Service revenues, Customer Support revenues advanced 1.3% year over year to $31 million.

Stratasys’ non-GAAP gross profit fell 8.8% from the year-ago period’s levels to $69.5 million. 

The non-GAAP gross margin expanded 130 basis points (bps) to 49.6%.

Non-GAAP operating expenses dropped 6.1% year over year to $69.6 million.

The non-GAAP operating loss was $0.1 million against a profit of $4.1 million in the year-ago quarter. The margin contracted 260 bps to negative 0.1%. Also, adjusted EBITDA plunged 47.9% to $5.1 million.

In the reported quarter, SSYS also saw significant growth driven by the launch of new products, including Origin 2, Stratasys Neo Build Processor for Investment Casting as well as TechStyle Fabric Alignment Station. These developments expanded its manufacturing applications and use cases, contributing to the company’s enhanced performance.

Stratasys’ offerings, including F3300 and TrueDent, showed strong demand in the third quarter. F3300 drove demand for the flagship F3300 industrial platform and delivered high-quality and durable thermoplastic parts with a high level of accuracy.

Stratasys’ Balance Sheet & Other Details

Stratasys exited the third quarter with cash and short-term deposits of $143.95 million compared with $150.9 million reported at the end of the previous quarter.

For the quarter ended September, the company reported an operating cash outflow of $4.5 million, a significant increase compared with $2.4 million recorded at the end of the previous quarter.

Stratasys’ 2024 Outlook

For 2024, management expects revenues to be between $570 million and $580 million. Non-GAAP earnings per share are forecasted in the range of 3-7 cents. The company anticipates gross margins to be between 49% and 49.2%. The non-GAAP operating margin is expected to be in the range of 0.6-1.3%. 

Stratasys estimates 2024 operating expenses in the band of $276-$278 million. Adjusted EBITDA is anticipated in the range of $25-$28 million.

Previously, the company had forecasted 2024 non-GAAP earnings per share ranging from 1 cent to 5 cents. Gross margins were expected to be between 48.7% and 49%, and the non-GAAP operating margin was anticipated to be between 0.5% and 1%. 

Adjusted EBITDA was predicted between $24 million and $27 million.

SSYS’ 2024 forecast for revenues and operating expenses remains unchanged.

Stratasys’ Zacks Rank & Stocks to Consider

Stratasys currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader retail-wholesale sector can consider some better-ranked stocks like Arista Networks (ANET - Free Report) , Accenture (ACN - Free Report) and Adobe (ADBE - Free Report) , each of which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANET has gained 68.1% in the year-to-date period. The long-term earnings growth rate for ANET is currently estimated at 10.06%.

Shares of Accenture have gained 5.5% in the year-to-date period. The long-term earnings growth rate for ACN is currently expected at 7.8%.

Adobe has declined 10.7% in the year-to-date period. The long-term earnings growth rate for ADBE is currently anticipated at 12.4%.



 


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