Stratasys, Ltd. Surges After Earnings Beat

Stratasys released its second quarter earnings report before opening bell this morning, posting adjusted earnings of 12 cents per share on $172.1 million in revenue. Wall Street had been looking for 6 cents per share in adjusted earnings and $175.8 million in sales. In last year’s second quarter, the 3D printer maker posted non-GAAP earnings of 15 cents per share on $182.3 million in sales.

Stratasys’ net losses improve

Stratasys said its GAAP loss improved to 36 cents per share from the year-ago quarter’s net loss of 55 cents per share. The company’s GAAP gross margin expanded to 46.2% from 45.5% last year. The non-GAAP gross margin also improved, expanding to 55.9% from 54.7% in the year-ago quarter. GAAP EBITDA was $6.9 million, while adjusted EBITDA was $19.5 million.

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“We were pleased to achieve further improvements in our operational performance during the second quarter.” Stratasys CEO Ilan Levin said in a statement. “Compared to the first quarter, we observed stronger margins and a substantial increase in non-GAAP operating profit. Our margins benefitted from a sales mix that favored our higher-end systems, including the recently launched J750, the industry’s most advanced full-color, multi-material 3D printer, as well as our ongoing efforts to improve operations, and reduce operating expenses.”

Stratasys announced GrabCAD Print, its new design-to-print application, during the quarter and some enhancements for its Fortus FDM 3D printer series during the second quarter. It also announced a services and consulting business.

Stratasys sets wide berth for earnings outlook

Stratasys management set a huge guidance range for the full year of between 17 cents and 43 cents per share. The consensus estimate currently stands at 33 cents per share. The 3D printer maker expects full-year revenue of $700 million to $730 million, which is solid against the consensus of $711.53 million. The company also expects a GAAP loss of between $1.60 and $1.28 per share and a gross margin of 54% to 55% for the full year.

Shares of Stratasys surged in premarket trading following this morning’s print, climbing by as much as 6.47% to $21.72. The stock also ended Wednesday in the green with a strong gain of 5.37% to close yesterday’s regular trading hours at $20.40 per share.