Stratasys, Ltd., Sunedison Inc Both Beat Earnings Estimates

Stratasys, Ltd. (NASDAQ:SSYS) and Sunedison Inc (NYSE:SUNE) both released their second quarter results before opening bell this morning. One beat on both earnings and revenue, while the other beat greatly on earnings but missed greatly on revenue.

Stratasys posted non-GAAP earnings of 55 cents per share or $28 million on $178.5 million in revenue, a 67% increase. Analysts had been expecting earnings per share of 45 cents on $156.6 million in revenue. Sunedison reported non-GAAP earnings of 12 cent per share on $557.5 million in revenue. Analysts had been expecting losses of 28 cents per share on $571.8 million in revenue.

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Breaking down Stratasys’ earnings

This morning Stratasys reported a 35% organic revenue growth year over year. Non-GAAP net income grew 51%. GAAP net loss was $173,000 or 0 cents per share. The second quarter results were a new record for the company. Non-GAAP EBITDA was $34.6 million for the quarter.

Stratasys said its MakerBot product line brought in $33.6 million of its second quarter revenue. The company cited successful new product introduction and channel expansion initiatives as the main drivers. MakerBot’s sales channel now includes The Home Depot, Inc. (NYSE:HD) and Tech Data, plus Stratasys Japan and the newly created MakerBot Europe.

The company also reported strong growth in dental solutions as it established a dental advisory board and introduced two low cost entry level dental systems.

Stratasys raises guidance

Stratasys also increased its guidance for the full fiscal year. The company said its outlook for the rest of the year has improved and it is accounting for the recent Harvest Technologies and Solid Concepts acquisitions. Both of those acquisitions closed in the current quarter before today’s earnings release. The 3D printer manufacturer increased its organic revenue growth rate to at least 30%. The previous projection was at least 25%. In addition, the company provided an update to its long-term operating model, now projecting at least 25% growth compared to the previous expectation of at least 20% growth.

The company increased its guidance range to between $750 million and $770 million, compared to the previous guidance of between $660 million and $680 million. Stratasys now projects non-GAAP net income of between $2.25 and $2.35 per share, compared to the previous guidance of between $2.15 and $2.25 per share.

Breaking down Sunedison’s earnings

GAAP losses per share were 16 cents, while GAAP revenue was $646.2 million. In the company’s Solar Energy segment, non-GAAP revenue was on 54 megawatts of solar energy systems. Sunedison left 164 megawatts of systems on its balance sheet and had 475 megawatts under construction at the end of the quarter. The company’s solar project pipeline increased to 4.3 gigawatts, while its backlog rose to 1.1 gigawatts at the end of the quarter.

During the second quarter, Sunedison also raised $600 million through an offering of convertible senior notes and completed the initial public offering for its Sunedison Semiconductor Ltd (NASDAQ:NASDAQ:SEMI).

Sunedison revises guidance

The solar power system maker also updated its guidance. It expects total non-GAAP sales volumes of its systems to be between 70 megawatts and 80 megawatts. It expects to keep between 200 megawatts and 230 megawatts on its balance sheet in the third quarter and complete between 270 megawatts and 310 megawatts worth of systems. In addition, Sunedison expects the average project pricing for fully developed solar energy systems to be between $2.60 and $3 per watt.

For the full year, the company projects non-GAAP sales volume of between 290 megawatts and 320 megawatts for its solar energy systems. It expects to keep between 710 and 830 megawatts on its balance sheet and complete between 1,000 and 1,150 megawatts worth of systems. It expects the average project pricing to be between $2.50 and $3 per watt.