) reported fourth-quarter 2012 earnings per share of 40 cents,
beating the Zacks Consensus Estimate of 27 cents.
Stratasys recorded total revenue of $96.4 million in the
fourth quarter, up 23.0% from $78.3 million in the year-ago
quarter. The company witnessed improvements in both product and
In the reported quarter, Product revenue grew significantly by
64.2% with the year-ago quarter. The upside was driven by
substantial growth in the company's system and consumable
earnings. This apart, Services revenue increased by 58.6% in the
fourth quarter of 2012, attributable to the improvement in demand
for the company's higher price for Fortus 3D Production Systems
and broad portfolio of PolyJet.
Gross profit stood at $32.8 million (46.1% of the total
revenue) in the quarter, up 32.6% from $22.9 million (52.5% of
the total revenue) in the year-ago quarter. The gross margin
declined as revenue increased at a lower rate than the cost of
Operating loss in the quarter was $4.2 million versus $5.8
million in the fourth quarter of 2011. However, operating expense
increased 170.9% year over year, primarily due to higher R&D
and SG&A expenses. Operating margin plummeted to a loss of
7.0% from operating profit margin of 20.4% in the year-ago
quarter. The company's product mix affected its operating
The company reported net loss of $3.5 million or 9 cents per
share in the fourth quarter compared with a loss of $6.30 million
or 17 cents per share in the prior-year quarter. Non-GAAP net
income was $16.3 million or 40 cents per share in the reported
quarter compared to a profit of $11.6 billion or 30 cents.
The company exited the quarter with cash and cash equivalents
of $153.9 million, up from $51.2 million in the previous quarter.
The company does not have any long-term debt.
The company provided its guidance for fiscal 2013, wherein,
revenue is expected in the range of $430.0 million to $445.0
million, while the Non-GAAP earnings are anticipated to be $1.80
to $1.95 per share. Moreover, GAAP loss is expected in the range
of 41 cents to 16 cents per share.
The fourth-quarter results were encouraging with EPS exceeding
the Zacks Consensus Estimate and revenues improving on a
year-over-year basis. Moreover, growth in product and services
revenue helped the company expand its business substantially.
Previously, the company had stated that
) agreed to discontinue its manufacturing and distribution
agreement for 3D printers. The discontinuation has been effective
since the end of 2012.
Despite a globally increasing demand for 3D printers,
Stratasys does not expect the termination to have a material
impact on the business fundamentals. However, we are a bit
apprehensive about the company's high-cost business model and
stiff competition from big and small players like
3D Systems Corp.
The company has a Zacks Rank #3, (Hold) on the stock.
), with a Zacks Rank #1 (Strong Buy), might be worth considering
at this point.
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