Stratasys (SSYS 0.61%) is slated to report its first-quarter 2022 results after market close on Monday, May 16. An analyst conference call is scheduled for 4:30 p.m. ET on the same day.
The 3D printing company's report will follow that of its longtime rival, 3D Systems, which plans to release its quarterly report after the market close on Monday, May 9. (You can read my 3D Systems earnings preview here.)
Investors will likely be approaching Stratasys' report with a fair dose of optimism. Last quarter, the company beat Wall Street's consensus estimates for both revenue and earnings. Moreover, its 2022 top-line guidance came in higher than analysts had been expecting.
In 2022, Stratasys stock is down 13.4% through April 20, which is largely a function of market dynamics. For context, the S&P 500 and tech-heavy Nasdaq Composite have returned -6% and -13.8%, respectively, over this period. 3D Systems stock is underwater by 35.1% so far this year.
Here's what to watch in Stratasys' Q1 report.
Image source: Getty Images.
Stratasys' key numbers
Below are the company's results from the year-ago quarter and Wall Street's consensus estimates to use as benchmarks.
| Metric | Q1 2021 Result | Wall Street's Q1 2022 Consensus Estimate | Wall Street's Projected Year-Over-Year Change |
|---|---|---|---|
| Revenue |
$134.2 million |
$157.6 million | 17% |
| Adjusted earnings per share (EPS) | ($0.06) | ($0.04) | Loss expected to narrow 33% |
Data sources: Stratasys and Yahoo! Finance.
Stratasys guided for year-over-year revenue growth in the high-teens percentage range. The company did not provide an earnings outlook.
For context, in the fourth quarter of 2021, Stratasys' revenue jumped 17% to $167 million, surpassing the $165 million Wall Street had expected, as well as the company's guidance of 16% growth. Growth was driven by the product segment, whose sales jumped 19%, while the service segment's sales rose 13%. Within the products business, 3D printer revenue surged 26% and print materials revenue grew 12%.
Last quarter's 3D printer revenue was the company's highest in three years. This is a positive sign because machine sales drive sales of print materials, which have attractive profit margins.
Last quarter's adjusted net income was $0.5 million, or $0.01 per share, down 92% from the year-ago period. The small adjusted profit likely surprised some investors as the analyst consensus estimate was for a loss of $0.01 per share.
Guidance
The market looks ahead, so guidance will be very important. Second-quarter guidance that is notably different from Wall Street's estimates will likely move the stock. And the stock will also probably move if management significantly revises its full-year 2022 guidance, which it issued last quarter. Such a tweaking doesn't seem likely this early in the year, however.
For Q2 2022, the Street is currently modeling for revenue to grow 12% year over year to $164.0 million. Analysts also project an adjusted loss of $0.02 per share, which would be flat with the year-ago period.
For full-year 2022, management guided for revenue of $680 million to $695 million, representing annual growth of about 12% to 15%. It also expects adjusted net income of $10 million to $13 million, or $0.14 per share to $0.19 per share. In 2021, the company posted an adjusted net loss of $4.3 million, or $0.07 per share.
