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Stratasys Shares Surge on Upbeat Guidance, Earnings Beat

Published 2024-05-29, 04:54 p/m
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MINNEAPOLIS & REHOVOT, Israel - Stratasys Ltd. (NASDAQ:SSYS), a leader in polymer 3D printing solutions, announced its financial results for the first quarter of 2024, surpassing analyst expectations with both revenue and adjusted earnings per share (EPS). The company reported an adjusted EPS of $0.02, which was $0.09 higher than the analyst estimate of -$0.07. Revenue for the quarter was $144.1 million, slightly above the consensus estimate of $143.82 million and flat compared to the $149.4 million reported in the first quarter of the previous year, excluding the impact of divestitures.

The company's stock responded positively to the news, jumping 4.5%, indicating investor confidence. The driver behind the stock's upward movement was the guidance provided for the full year of 2024, which came in ahead of consensus estimates, alongside the earnings and revenue beat for the quarter.

Stratasys reported a GAAP net loss of $26.0 million, or -$0.37 per diluted share, compared to a net loss of $22.2 million, or -$0.33 per diluted share, in the same period last year. On a non-GAAP basis, the net loss was $1.7 million, or -$0.02 per diluted share, compared to non-GAAP net income of $1.1 million, or $0.02 per diluted share, in the first quarter of 2023.

Dr. Yoav Zeif, Stratasys' CEO, commented on the results, "We delivered solid first quarter operating and financial results that included record consumables revenues, improved gross margins, and positive operating and free cash flow, despite ongoing challenges posed by our customers' capital spending constraints." He added, "We continue to see increased traction for our newest technology, the F3300 FDM system, as leading companies such as Nissan (OTC:NSANY), BAE Systems (LON:BAES), and Sikorsky have joined Toyota (NYSE:TM) as early customers that will benefit from faster, lower-cost manufacturing of end-use parts."

For the full year of 2024, Stratasys reiterated its outlook, expecting revenue between $630 million to $645 million, with the midpoint of this range slightly below the consensus estimate of $635 million. The company anticipates an adjusted EPS of $0.12 to $0.19, with the midpoint of this guidance above the consensus estimate of $0.14. Non-GAAP gross margins are projected to be between 49.0% and 49.5%, with operating expenses expected to range from $292 million to $297 million.

The company's guidance also forecasts full-year non-GAAP operating margins between 2.5% and 3.5%, a GAAP net loss of $88 million to $72 million, and non-GAAP net income of $9 million to $14 million. Additionally, Stratasys expects to generate positive cash flow from operating activities and has planned capital expenditures of $20 million to $25 million.

Stratasys' financial discipline and strong balance sheet were emphasized by Dr. Zeif, who stated, "Our healthy balance sheet, and financial and operating discipline, provide stability to weather the current environment. And when the macro environment eases and capital spending returns to normal levels, our differentiated portfolio and leading go-to-market strength position us to meaningfully accelerate profitable growth, driving long-term shareholder returns."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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