Stratasys (SSYS), a prominent 3D printer manufacturer, announced its second-quarter 2024 earnings, reporting a loss of $0.04 per share, in line with analysts’ expectations. This figure represents a decline compared to the earnings of $0.04 per share reported during the same period last year. These figures are adjusted to exclude non-recurring items.
While the company’s earnings met expectations, its revenues fell short. Stratasys reported $138.04 million in revenue for the quarter, missing the Zacks Consensus Estimate by 6.78%. This figure is lower than the $159.75 million in revenue generated during the same period last year. This performance marks the company’s fourth consecutive quarter of failing to exceed revenue estimates.
The sustainability of Stratasys’ stock price movement in the near term will largely hinge on management’s commentary during the upcoming earnings call and the future earnings outlook. Investors are eager to understand the company’s strategies to navigate current challenges and drive future growth.
Stratasys’ stock has struggled this year, declining by approximately 46.2% since the beginning of 2024, while the S&P 500 has gained 17.2% during the same period. This underperformance highlights the need for investors to carefully evaluate the company’s future prospects.
To assess the company’s trajectory, investors often turn to earnings outlook, which encompasses consensus earnings expectations for upcoming quarters and the recent trend in these expectations. Historical data demonstrates a strong correlation between short-term stock movements and changes in earnings estimate revisions. Investors can monitor these revisions independently or utilize tools like the Zacks Rank, which utilizes earnings estimate revisions to provide a reliable stock rating system.
Prior to the release of Stratasys’ earnings, the trend in earnings estimate revisions was mixed. While these revisions may shift following the release of the earnings report, the current status translates to a Zacks Rank #3 (Hold) for the stock. This ranking suggests that Stratasys’ stock is expected to perform in line with the broader market in the near future.
Investors are keenly interested in how estimates for upcoming quarters and the current fiscal year evolve in the coming days. The current consensus EPS estimate stands at $0.07 for the next quarter, based on $165.07 million in revenue, and $0.14 for the current fiscal year, based on $631.49 million in revenue.
It’s crucial for investors to remember that the overall industry outlook can significantly impact the performance of Stratasys’ stock. The Computer – Peripheral Equipment industry, to which Stratasys belongs, currently ranks within the top 4% of over 250 Zacks industries. Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor exceeding 2 to 1.
Another company in the broader Zacks Computer and Technology sector, Asana, Inc. (ASAN), is yet to report its results for the quarter ending July 2024. The report is anticipated to be released on September 3. Asana is projected to report a quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the past 30 days, reaching the current level. Asana, Inc.’s revenue is expected to be $177.44 million, an increase of 9.2% compared to the same quarter last year.
