) is set to report fourth-quarter 2013 results on Mar 3. Last
quarter, it posted a negative surprise of 6.67%. Let's see how
things are shaping up for this announcement.
Factors This Past Quarter
Stratasys' third-quarter results were encouraging as it
reported better-than-expected sales on the back of solid
performances by its Product and Services segments. However,
margins were impacted by the MakerBot acquisition and incremental
Although these investments are expected to impact margins in
the short run, product launches and global expansion will help
Stratasys in the long run to generate incremental sales.
Moreover, the 3D printing market presents a favorable
long-term opportunity as a large number of engineers, designers,
architects and entrepreneurs are resorting to 3D solutions for
their primary designing. Moreover, Stratasys has a huge installed
base of 3D printing systems. Therefore, the company should be
able to sell related consumables.
Nonetheless, as the company operates in a high-cost business
segment, competition from big and small players like
3D Systems Corp.
) adds to the company's concerns. The prevailing economic
uncertainty, especially in Europe is affecting the company's
volumes. Some customers are delaying their purchases owing to the
current economic condition.
Our proven model does not conclusively show that Stratasys is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #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 41 cents. Hence, the difference is 0.00%.
Stratasys' Zacks Rank #5 (Strong Sell) 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 Stock to Consider
Here are some companies to consider as our model shows these
have the right combination of elements to post an earnings beat
) has earnings ESP of +1.62% and carries a Zacks Rank #2
) has earnings ESP of +6.67% and carries a Zacks Rank #2.
AUTOZONE INC (AZO): Free Stock Analysis
3D SYSTEMS CORP (DDD): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
ZIPREALTY INC (ZIPR): Free Stock Analysis
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