Stratasys Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

Stratasys (NAS: SSYS) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stratasys beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.

Margins improved across the board.

Revenue details
Stratasys reported revenue of $43.6 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $42.2 million. Sales were 29% higher than the prior-year quarter's $33.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.31. The five earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS of $0.27 for Q4 were 35% higher than the prior-year quarter's $0.20 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.5%, 160 basis points better than the prior-year quarter. Operating margin was 20.4%, 220 basis points better than the prior-year quarter. Net margin was 13.3%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $41.5 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $179.5 million. The average EPS estimate is $1.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 415 members out of 439 rating the stock outperform, and 24 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give Stratasys a green thumbs-up, and six 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 $28.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying 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.

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