3D printing company Stratasys (NASDAQ: SSYS) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
Stratasys beat analysts’ revenue expectations last quarter, reporting revenues of $140 million, down 6.9% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Stratasys a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Stratasys’s revenue to decline 3.2% year on year, improving from the 5.6% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stratasys has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Stratasys’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Proto Labs delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 3%, and Gorman-Rupp reported revenues up 7.7%, topping estimates by 3.5%. Proto Labs’s stock price was unchanged after the resultswhile Gorman-Rupp was up 16%.
Read our full analysis of Proto Labs’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 9.9% on average over the last month. Stratasys is up 12.7% during the same time and is heading into earnings with an average analyst price target of $12.33 (compared to the current share price of $9.05).
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