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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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 recommends Stratasys. The Motley Fool owns shares of 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.