The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Stratasys beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted.
Gross margins increased, operating margins contracted, net margins contracted.
Stratasys reported revenue of $49.7 million. The five analysts polled by S&P Capital IQ expected to see revenue of $48.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $39.7 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 four earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.24 for Q3 were 11% lower than the prior-year quarter's $0.27 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 56.2%, 190 basis points better than the prior-year quarter. Operating margin was 18.3%, 150 basis points worse than the prior-year quarter. Net margin was 10.4%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $52.4 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $195.7 million. The average EPS estimate is $1.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 731 members out of 765 rating the stock outperform, and 34 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 184 give Stratasys a green thumbs-up, and nine 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 $58.50.
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