Stratasys, Ltd. (NASDAQ:SSYS), the 3D printing and additive manufacturing solutions company, today announced preliminary third quarter 2015 financial results.
The Company expects to report third quarter revenue in the range of $166 to $168 million, and non-GAAP net income (loss) in the range of ($1.5) to$1.0 million, or ($0.03) to $0.02 per diluted share.
The Company expects to report a GAAP net loss in the range of ($190) to ($155) million, or ($3.66) to ($2.98) per share, which includes non-cash, goodwill and other intangible asset impairment charges of approximately $140 to $180 million for its MakerBot reporting unit. In addition, the Company is in the process of performing a goodwill impairment analysis for its other reporting units, which may result in additional impairment charges.
These are preliminary results based on current expectations and are subject to quarter-end closing adjustments. Actual results may differ.
The Company’s third quarter performance is believed to reflect a continuation of the macro-economic environment that impacted results across all regions and most product and service lines during the first half of 2015, and is believed to be driven primarily by weak investment in capital equipment by customers within key verticals. In addition, the Company believes that during 2013 and 2014, Stratasys and the overall 3D printing industry experienced a period of extraordinary growth that may have created excess capacity in the market, and that this is contributing to the current slowdown as that excess is worked off. Reflecting the low visibility of the current market environment, typical order trends did not materialize as expected at the end of the quarter.
David Reis, Chief Executive Officer of Stratasys, commented, “We are disappointed with our third quarter results, which reflect a continuation of the challenging macroeconomic environment and weaker conditions in our market that we observed in the first half of 2015. Despite these near-term challenges, we remain convinced of the long-term growth opportunity within 3D printing. We will continue to make the adjustments to our structure and operating costs in light of market conditions, but we are moving forward with the longer-term initiatives that we believe will help position our company for future growth, including enhancements to our go-to-market strategy and aggressive investments around new product development.” (Original Source)
Shares of Stratasys close today at $30.87, up $1.55 or 5.29%. SSYS has a 1-year high of $125 and a 1-year low of $24.82. The stock’s 50-day moving average is $29.38 and its 200-day moving average is $35.48.
On the ratings front, Stratasys has been the subject of a number of recent research reports. In a report issued on October 19, Jefferies Co. analyst James Kisner maintained a Buy rating on SSYS, with a price target of $40, which implies an upside of 35.0% from current levels. Separately, on August 6, Citigroup’s Kenneth Wong upgraded the stock to Buy and has a price target of $35.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, James Kisner and Kenneth Wong have a total average return of -3.4% and -8.1% respectively. Kisner has a success rate of 46.4% and is ranked #3279 out of 3795 analysts, while Wong has a success rate of 20.0% and is ranked #3042.
Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $39.50 which is 33.4% above where the stock opened today.
Stratasys Ltd provides additive manufacturing solutions for the creation of parts used in the processes of designing and manufacturing products and for the direct manufacture of end parts. It offers 3D printers and 3D production systems.