Stratasys (SSYS) Q2 Earnings & Sales Surpass Expectations
Stratasys SSYS reported second-quarter 2023 non-GAAP earnings of 4 cents per share. The Zacks Consensus Estimate was pegged at a loss of 3 cents per share. The bottom line jumped 100% year over year.
The company’s revenues climbed 1.6% year over year to $159.8 million, which came ahead of the consensus mark of $153.2 million. The year-over-year surge in the top line was partially offset by the divestitures of certain businesses and unfavorable foreign currency exchange rates.
Quarter in Detail
Segment-wise, Product revenues were down 5.7% from the year-ago quarter to $109.1 million, primarily due to the divestiture and negative impact of foreign exchange rates. Within Product revenues, System revenues declined 17.9%, while Consumables revenues dropped 6.9%.
Stratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Revenues from Services decreased 0.5% year over year to $50.6 million. Within Service revenues, customer support revenues advanced 8% year over year.
Stratasys’ non-GAAP gross profit decreased 1.8% from the year-ago period to $77.5 million. The non-GAAP gross margin expanded 90 basis points (bps) at 48.5%.
Non-GAAP operating expenses declined to $72.5 million year over year from $77.4 million. As a percentage of revenues, the same shrunk 100 bps to 45.4%.
The non-GAAP operating income came in at $5 million compared with the year-ago quarter’s income of $1.9 million. The margin expanded by 190 bps to 3.1%. Also, adjusted EBITDA grew 43% to $10.6 million.
Balance Sheet & Other Details
Stratasys exited the second quarter with cash and short-term deposits of $205.4 million compared with $287.6 million witnessed at the end of the previous quarter.
As of Jun 30, 2023, there was no long-term debt. During the June-ended quarter, the company utilized operating cash flow of $23.2 million.
FY23 Outlook
For 2023, management projects revenues between $630 million and $670 million and non-GAAP earnings in the range of 12-24 cents per share. The company projects a gross margin between 48% and 49%. Non-GAAP operating margin is expected in the range of 2.5-3.5%.
Stratasys estimates 2023 non-operating expenses in the range of $290-$300 million. Adjusted EBITDA is forecasted in the band of $35-$50 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold). Shares of SSYS have lost 19.5% over the past year.
Some better-ranked stocks from the broader Computer and Technology sector are NVIDIA Corporation NVDA, Salesforce CRM and Meta Platforms META. While NVIDIA sports a Zacks Rank #1 (Strong Buy), Salesforce and Meta carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s second-quarter fiscal 2024 earnings has been steady at 92 cents per share over the past 90 days. For fiscal 2024, earnings estimates have moved up by 13 cents to $7.79 in the past 30 days.
NVDA's earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 0.26%. The stock has soared 134.3% in the past year.
The Zacks Consensus Estimate for Salesforce’s second-quarter fiscal 2024 earnings has been revised southward by a penny to $1.60 per share over the past 60 days. For fiscal 2024, earnings estimates have moved up by 4 cents to $7.44 in the past 60 days.
CRM's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.5%. The stock has gained 9.2% in the past year.
The Zacks Consensus Estimate for Meta Platforms' third-quarter 2023 earnings has been revised upward by 15.1% to $3.44 per share over the past seven days. For 2023, earnings estimates have moved north by 7.9% to $12.94 in the same time frame.
META’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average beat being 19%. The stock has surged 71.2% in the past year.
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