The 10-second takeaway
For the quarter ended March 31 (Q1), Stratasys met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Stratasys chalked up revenue of $97.2 million. The 10 analysts polled by S&P Capital IQ foresaw a top line of $98.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $45.0 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 $0.43. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. Non-GAAP EPS of $0.43 for Q1 were 54% higher than the prior-year quarter's $0.28 per share. GAAP EPS were -$0.40 for Q1 against $0.21 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 38.4%, much worse than the prior-year quarter. Operating margin was -17.2%, much worse than the prior-year quarter. Net margin was -16.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $105.8 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $437.2 million. The average EPS estimate is $1.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,011 members out of 1,064 rating the stock outperform, and 53 members rating it underperform. Among 288 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 272 give Stratasys a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stratasys is outperform, with an average price target of $80.21.
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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.