Back to top

What to Expect When Stratasys (SSYS) Reports Q4 Earnings?

Read MoreHide Full Article

Stratasys Ltd. (SSYS - Free Report) is set to report fourth-quarter 2016 results on Mar 9. Last quarter, the company posted a positive earnings surprise of 33.3%. Notably, the stock has surpassed the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 57.1%.

Let's see how things are shaping up for this announcement.

Factors at Play

Stratasys reported dismal third-quarter results. It posted a loss and revenues missed the Zacks Consensus Estimate. Also, year-over-year revenue comparisons were unfavourable. The company’s quarterly results were negatively impacted by difficult market conditions and lower-than-expected performance at its MakerBot business. Also, the company lowered its outlook for 2016.

Also, some customers are delaying their purchases owing to the current economic conditions. In the 3D printer business, the majority of customers have moved toward the lower-priced uPrint, which may affect the company’s margins in the upcoming quarters. Competition from 3D Systems Corporation (DDD - Free Report) is also a potent headwind.

Stratasys, Ltd. Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively show that Stratasys is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for Stratasys is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 6 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Stratasys carries a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:

Constellation Brands, Inc. (STZ - Free Report) , with an Earnings ESP of +2.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

McCormick & Company, Incorporated (MKC - Free Report) , with an Earnings ESP of +5.33% and a Zacks Rank #3.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank.  See the 2017 Top 10 right now>>

More from Zacks Analyst Blog

You May Like