The 10-second takeaway
For the quarter ended June 30 (Q2), Stratasys beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margins improved, operating margins shrank, and net margins dropped.
Stratasys notched revenue of $49.4 million. The five analysts polled by S&P Capital IQ predicted sales of $46.4 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $37.6 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 $0.32. The five earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.14 for Q2 were 22% lower than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.9%, 30 basis points better than the prior-year quarter. Operating margin was 11.7%, 620 basis points worse than the prior-year quarter. Net margin was 6.1%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.5 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $188.0 million. The average EPS estimate is $1.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 614 members rating the stock outperform and 31 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Stratasys a green thumbs-up, and seven 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 $51.00.
- Add Stratasys to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy