Stratasys Earnings: Here’s Why Investors are Buying Shares Now

Stratasys Inc. (NASDAQ:SSYS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.12%.

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Stratasys Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 53.57% to $0.43 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 116.19% to $97.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stratasys Inc. reported adjusted EPS income of $0.43 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $98.07 million.

Quoting Management: “Our record first quarter results reflect a continuation of the strong worldwide demand we are observing for our innovative products and services,” said David Reis, chief executive officer of Stratasys. “Strong sales of our higher-margin products help drive a significant increase in non-GAAP gross margin, and a 40% increase in non-GAAP net income in the first quarter over last year. We are pleased with our strong start to 2013.”

Key Stats (on next page)…

Revenue increased 36.61% from $71.15 million in the previous quarter. EPS increased 7.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.45 to a profit $0.44. For the current year, the average estimate is a profit of $1.88, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)