Stratasys' Q4 Earnings Miss Estimates

Stratasys Ltd. (SSYS) is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs).

However, rapid growth is bringing financial pressures in its wake, as the company has to constantly invest in research and development and raise funds for acquisitions. Moreover, stiff competition in the industry, amid persisting economic uncertainty, coupled with foreign currency risks are likely to have a negative impact on the to-be-reported quarter results. Due to this, investors have been eagerly awaiting Stratasys’ earnings report in order to set the record straight and to give some guidance on where this company is heading.

This is especially true given the recent earnings estimate revisions for Stratasys as the consensus estimate has been going lower. However, Stratasys does have somewhat decent history when it comes to recent earnings reports as the stock has beaten estimates twice and also misses twice in the last four quarters, making for an average surprise of approximately 11.18%.

Currently, Stratasys has a Zacks Rank #5 (Strong Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Stratasys misses on earnings. Our consensus called for EPS of 41 cents, and the company reported EPS of 31 cents.

Revenue: Revenues missed. Stratasys posted revenues of $217.1 million, compared to our consensus estimate of $218 million.

Key Stats: The company witnessed year over year growth in revenue, primarily due to better-than-expected growth in both Products and Services segments.

2015 Outlook: For 2015, Stratasys expects revenue to be in the range of $940–$960 million and non-GAAP earnings to be in the range of $2.07–$2.24.

Stock Price:  Shares are up over 4% in the pre-market session.

 

Disclosure: Zacks.com contains statements and ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.