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Stratasys (SSYS) Q1 Earnings Beat Estimates, Revenues Up Y/Y

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Stratasys Ltd. SSYS reported first-quarter 2021 results, wherein it outpaced earnings and revenue estimates.

The company reported a non-GAAP net loss of 6 cents per share in the first quarter. The Zacks Consensus Estimate was pegged at a loss of 8 cents per share. Moreover, the company’s bottom-line figure was narrower than the year-ago quarter’s net loss of 19 cents per share.

Stratasys’ revenues of $134.2 million inched up 1% year over year. The revenue figure also surpassed the consensus mark of $133 million. This year-over-year growth in the top line reflects strength in System performance.

Stratsys CEO Dr. Yoav Zeif said, “3D printing is migrating from being primarily a prototyping tool to providing full-scale, digital manufacturing platforms at mass production levels. With our focused business model, we continue to make progress on our strategy to grow our manufacturing applications, which will solidify our position as the first choice in polymer 3D printing.”

Stratasys, Ltd. Price, Consensus and EPS Surprise

Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. Price, Consensus and EPS Surprise

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

Q1 Details

Segment-wise, Product revenues were up 8.6% from the year-ago quarter to $90.3 million. Within Product revenues, System revenues surged 41% while Consumables revenues fell 8% year over year.

Revenues from Services declined 11.8% year on year to $43.9 million. Within Service revenues, customer support revenues dropped 2.2% year over year.

Stratasys’ non-GAAP gross profit dipped 1.7% from the year-ago quarter to $62.6 million. Non-GAAP gross margin contracted 170 basis points (bps) to 46.7%, mainly due to a higher mix of System revenues in the sales mix.

Non-GAAP operating expenses fell 10.3% year on year to $65.2 million. Moreover, as a percentage of revenues, it shrank 610 bps to 48.6%. The company’s cost-containment efforts helped minimize expenses.

Non-GAAP operating loss totaled $2.6 million compared with an operating loss of $8.4 million recorded in the prior-year quarter.

The company exited the first quarter with cash and short-term deposits of $530.4 million compared with the $299 million witnessed at the end of the previous quarter.

As of Mar 31, 2021, there was no long-term debt.

During the January-March quarter, the company generated operating cash flow of $22.8 million.

Business Outlook

For the second quarter, management projects revenues to grow in the mid-teen percentage range on a year-over-year basis.

Furthermore, Stratasys estimates 2021 operating expenses to be up $25-$30 million from the 2020 level, chiefly due to its return to the five-day-work week from the four-day strategy and the impact of recent acquisitions.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader technology sector include Lam Research Corporation LRCX, Vishay Intertechnology, Inc. VSH and LG Display Co., Ltd. LPL, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Lam Research, Vishay Intertechnology and LG Display is currently projected at 32.8%, 20.26% and 29.8%, respectively.

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Lam Research Corporation (LRCX) : Free Stock Analysis Report

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