The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stratasys crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Stratasys recorded revenue of $96.4 million. The four analysts polled by S&P Capital IQ expected a top line of $72.2 million on the same basis. GAAP reported sales were 61% higher than the prior-year quarter's $44.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The eight earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. Non-GAAP EPS of $0.40 for Q4 were 29% higher than the prior-year quarter's $0.31 per share. GAAP EPS were -$0.16 for Q4 compared to $0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.2%, 540 basis points worse than the prior-year quarter. Operating margin was -7.0%, much worse than the prior-year quarter. Net margin was -5.9%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $98.1 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $399.6 million. The average EPS estimate is $1.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 948 members out of 1,001 rating the stock outperform, and 53 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Stratasys a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stratasys is hold, with an average price target of $69.00.
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