
Stratasys (SSYS) Stock Falls on Weak Third Quarter Preliminary Results
NEW YORK (TheStreet) -- Shares of Stratasys (SSYS) - Get Report are down by 12.08% to $27.14 in afternoon trading on Friday, after the company provided weak third quarter guidance yesterday.
The 3D printer manufacturer warned that third quarter revenue will be between $166 million and $168 million. The company is also expecting to report an EPS between a net loss of 3 cents and a profit of 2 cents per share.
Analysts on average are expecting the company to report earnings of 8 cents per share on revenue of $184.6 million for the quarter.
"We are disappointed with our third quarter results, which reflect a continuation of the challenging macroeconomic environment and weaker conditions in our market that we observed in the first half of 2015," CEO David Reis said in a statement.
"We will continue to make the adjustments to our structure and operating costs in light of market conditions, but we are moving forward with the longer-term initiatives that we believe will help position our company for future growth, including enhancements to our go-to-market strategy and aggressive investments around new product development," he continued.
Stratasys is scheduled to report earnings before the market open on Wednesday, November 4.
Separately, TheStreet Ratings team rates STRATASYS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate STRATASYS LTD (SSYS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 13154.9% when compared to the same quarter one year ago, falling from -$0.17 million to -$22.93 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, STRATASYS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$15.65 million or 428.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- STRATASYS LTD's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STRATASYS LTD reported poor results of -$2.35 versus -$0.70 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus -$2.35).
- This stock's share value has moved by only 72.77% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full analysis from the report here: SSYS








