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Working through a restructuring in a tough market, 3D printer maker Stratasys ( SSYS ) early Thursday reported a Q4 loss and big drop in revenue that nevertheless beat expectations on the top and bottom lines. Q4 revenue fell 20% from the year-earlier quarter to $173.4 million, but that beat the analyst consensus estimate of $169.3 million. It marked the second quarter in a row of declining revenue. The company reported a net loss of $232.3 million, or $4.46 per share. When adjusted for one-time items, Stratasys reported a loss of 1 cent, vs. consensus estimates for an 11-cent loss, as polled by Thomson Reuters. Stratasys stock was up 12.5%, near 23, in midday trading in the stock market today . Stratasys is up 55% since hitting an all-time low of 14.88 on Jan. 26. 3D printer stocks have rebounded in the past month-plus after suffering sharp drops. 3D Systems ( DDD ) stock was up 5% midday Thursday, near 12.40, after hitting its all-time low of 6 on Jan. 20. ExOne ( XONE ) was up 5.5%, near 11, and Voxeljet ( VJET ) stock also was up 5.5%, near 5.25. Shares of Stratasys and 3D Systems, the two industry leaders, have been crushed since mid-2014, as both have posted disappointing quarterly earnings reports going back more than a year. For 2016, Stratasys guided to revenue of $700 to $730 million, up 3% at the midpoint. Analyst consensus is $700.6 million. It expects EPS ex items of 17 cents to 43 cents, vs. the consensus of 18 cents. Analysts have not been convinced of a rebound in the 3D printing industry. “There are no signs of a broad-based recovery yet, in our view, so demand commentary from Stratasys will be important,” wrote Weston Twigg, an analyst at Pacific Crest Securities, in a research note prior to the Stratasys report. “An industry rebound is not yet visible amid weak global capital spending trends,” Cowen analyst Robert Stone wrote, also before Stratasys earnings. During the quarter, Stratasys said it cut its workforce by 10% and “initiated programs to reduce operating expenses and optimize manufacturing.” In its earnings release, Stratasys said it can achieve a significant improvement in its operating structure in 2016 that will translate into improved operating profit compared with 2015. “Our fourth-quarter results reflect the impact of a market environment that is consistent with conditions we have observed throughout the year,” CEO David Reis said in the earnings release. “We are making progress in optimizing our company’s cost structure and improving working capital management, and were satisfied to observe a favorable trend in operating expenses and positive cash flow from operations during the quarter.” Scalper1 News
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