Stratasys, Ltd. (NASDAQ:SSYS) released its fourth quarter earnings before opening bell this morning, posted non-GAAP earnings of 50 cents per share on revenue of $155.8 million. Analysts had been expecting the company to post earnings of 49 cents per share on $151 million in revenue. In the same quarter a year ago, Stratasys’ non-GAAP earnings per share were 40 cents.
GAAP net losses for the quarter were $2 million or 4 cents per share. That’s compared to last year’s pro forma loss of $3.5 million or 9 cents per share.
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Breaking down Stratasys’ results
The company noted that the main drivers of its fourth quarter earnings were the realization of its merger with Objet and the expanding 3D printing and manufacturing solutions markets. Stratasys, Ltd. (NASDAQ:SSYS) reported strong demand across all of its product lines. It also reported that higher margin products drove its record non-GAAP profits. Gross margins were 60.2% for the quarter, compared to 57.8% in the same quarter a year ago.
Stratasys, Ltd. (NASDAQ:SSYS) reported 38% growth in revenue from its hardware division and 33% growth in revenue from its consumable division, excluding revenue contributions from MakerBot. MakerBot itself contributed $24.9 million to the company’s revenue during the quarter.
Stratasys, Ltd. (NASDAQ:SSYS) reported that its fourth quarter per share calculations were affected by the issuance of 5.3 million new shares in September. The company also issued 3.9 million new shares for the MakerBot acquisition.
The 3D printer maker sold 10,963 3D printing and manufacturing systems during the fourth quarter. On a combined pro forma basis, the company has sold a cumulative 75,818 systems globally as of the end of the year.
Stratasys guides for 2014
For the current fiscal year, Stratasys, Ltd. (NASDAQ:SSYS)’s earnings estimates were on the low side. The company said it expects earnings to be between $2.15 and $2.25 per share. Analysts had been expecting Stratasys to guide for earnings of $2.23 per share. The company believes revenue will be between $660 million and $680 million. Consensus estimates were just about in line with the midpoint of that guidance, coming in at $669 million.
Stratasys, Ltd. (NASDAQ:SSYS) believes organic sales excluding MakerBot will grow at least 25% this year and that MakerBot will grow at a higher rate this year as well.