) is set to report first-quarter 2014 results on May 9. Last
quarter, the company posted a negative earnings surprise of 4.88%.
Let us see how things are shaping up for this announcement.
Growth Factors This Past Quarter
Stratasys' fourth-quarter results were encouraging as it reported
better-than-expected sales on the back of solid performances by its
Product and Services segments.
Nonetheless, Stratasys' investments are expected to impact its
operating results in the near term. Moreover, Stratasys expects
second-half fiscal 2014 non-GAAP net income to be governed by the
rate of adoption of its new products. Considering the evolving
nature of the 3D printing market and high cost of operations, we
believe much of the company's long-term profitability will depend
on efficient cost management.
Furthermore, we believe that Stratasys' product launches, recent
acquisitions and global expansion will help it to generate
incremental sales by increasing its installed base.
To conclude, Stratasys' high-cost business model and competition
from big and small players like
3D Systems Corp.
) remain concerns.
Our proven model does not conclusively show that Stratasys will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 33 cents. Hence, the difference is 0.00%.
Stratasys' Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here is another company you may want to consider as our model shows
that it has the right combination of elements to post an earnings
beat this quarter:
), Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
3D SYSTEMS CORP (DDD): Free Stock Analysis
INTUIT INC (INTU): Free Stock Analysis Report
STRATASYS LTD (SSYS): Free Stock Analysis
VOXELJET AG-ADR (VJET): Free Stock Analysis
To read this article on Zacks.com click here.