Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Stratasys Ltd. Adjusted Earnings Jump 25% to $0.50 per Share

By Patrick Morris - Mar 3, 2014 at 11:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As 3-D printing company Stratasys continues its transition after its merger with Objet, the company reported revenue grew by 62% and adjusted earnings were up 25% in the fourth quarter.

Today, Stratasys ( SSYS -6.56% ) reported a non-GAAP net income of $25.8 million in the fourth quarter, or $0.50 per share, an improvement of 25% over the $0.40 per share, or $16.3 million in net income, seen in the fourth quarter of last year. The company also grew its organic revenue by 36% and its total revenue by 62% as a result of stronger demand across all of its product lines. Shares were down more than 2% as of 11 a.m.

"Our fourth quarter results reflect the ongoing realization of revenue synergies from the Stratasys-Objet merger, as well as the rapidly growing demand for additive manufacturing and 3D printing solutions we are observing worldwide," said the CEO of Stratasys, David Reis, in a statement. "We experienced strong organic growth driven by demand across multiple product lines, as well as an impressive contribution from MakerBot."

On a generally accepted accounting principles (GAAP) basis, Stratasys reported a net loss of $0.04 per share in the fourth quarter, which was an improvement over the $0.09 net loss seen in the fourth quarter of last year. The company also reported a loss of $0.64 per share for the full year in 2013, versus an income of $0.37 per share in 2012.

Stratasys' non-GAAP margins expanded, and its gross margin was 60.2% in the fourth quarter, a gain of 2.4 percentage points over the 57.8% reported in the same period last year. In addition, its operating margin grew one percentage point to 20.2%.

Reis said that "a favorable product mix benefited margins, and helped contribute to our record profits. We are very pleased with our fourth quarter and overall annual results." The company generated almost $25 million in revenue from MarketBot. Stratasys touted MakerBot's "highly affordable and functional desktop 3D printers."

In addition, Stratasys gave its guidance for the full year of 2014, saying it expects revenue between $660 million and $680 million, which would be an improvement of more than 35% over the $484 million in 2013. It also expects a non-GAAP net income of $2.15 to $2.25 per share, which would be an improvement of 10% over the $1.95 seen in 2013.

"We have positive momentum, driven by the ongoing demand for our industry-leading products and services," Reis concluded. "We are pleased with our many recent new product introductions and channel initiatives, which we believe will greatly improve 3D printing accessibility and drive expanded usage for our products."


This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Stratasys Ltd. Stock Quote
Stratasys Ltd.
$24.22 (-6.56%) $-1.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/04/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.