Stratasys (SSYS) Q3 Earnings Meet, Sales Surpass Expectations
Stratasys SSYS reported third-quarter 2023 non-GAAP earnings of 4 cents per share, which matched the Zacks Consensus Estimate. The bottom line declined 20% year over year.
The company’s revenues remained flat year over year at $162.1 million, which came ahead of the consensus mark of $162 million. The 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 were up 1% from the year-ago quarter to $113.27 million. Within Product revenues, System revenues declined 8.6% year over year to $51.5 million, while Consumables revenues increased 10.7% year over year to $61.8 million.
Revenues from Services decreased 2.4% year over year to $48.9 million. Within Service revenues, customer support revenues advanced 3.6% year over year to $30.6 million.
Stratasys’ non-GAAP gross profit decreased 0.4% from the year-ago period to $78.3 million. The non-GAAP gross margin contracted 20 basis points (bps) at 48.5%.
Non-GAAP operating expenses remained flat year over year at $74.2 million.
The non-GAAP operating income came in at $4.1 million, down 0.4% year over year. The margin contracted by 30 bps to 2.8%. Also, adjusted EBITDA declined 1% to $9.8 million.
Balance Sheet & Other Details
Stratasys exited the third quarter with cash and short-term deposits of $184.5 million compared with $205.4 million witnessed at the end of the previous quarter.
During the June-ended quarter, the company utilized an operating cash flow of $12.7 million due to the costs related to mergers and acquisitions, defense against a hostile tender offer, a proxy contest and related professional fees.
FY23 Outlook
For 2023, management projects revenues between $620 million and $630 million and non-GAAP earnings in the range of 10-14 cents per share. The company projects a gross margin between 48% and 49%. Non-GAAP operating margin is expected in the range of 2-2.5%. The company adjusted the 2023 outlook for divestments, the impact from the delayed launch of F3300 and soft capital expenditure conditions.
Stratasys estimates 2023 non-operating expenses in the range of $288-$290 million. Adjusted EBITDA is forecasted in the band of $35-$38 million.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold). Shares of SSYS have lost 13.3% year to date.
Some better-ranked stocks from the broader Computer and Technology sector are NVIDIA NVDA, NetEase NTES and Dropbox DBX, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s third-quarter fiscal 2024 earnings has been revised by 2 cents northward to $3.34 per share in the past 60 days. For fiscal 2024, earnings estimates have increased by 3 cents to $10.85 in the past seven days.
NVIDIA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 9.8%. Shares of NVDA have rallied 233% year to date.
The Zacks Consensus Estimate for NetEase's third-quarter 2023 earnings has been revised upward by 9 cents to $1.65 per share in the past 30 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 24.54%. Shares of NTES have gained 58.4% year to date.
The Zacks Consensus Estimate for Dropbox's fourth-quarter 2023 earnings has remained unchanged for the past 90 days at 48 cents per share. For fiscal 2023, earnings estimates have been revised 7 cents upward to $1.96 per share in the past 30 days.
DBX’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 13.14%. Shares of DBX have climbed 23.1% year to date.
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