Yahoo Finance Why 3D Printing Company Stratasys (SSYS) Stock is Soaring Today
Stratasys SSYS stock is killing it in the market today after posting its fourth quarter earnings results.
The company beat on our EPS consensus estimate of -$0.24, actually posting earnings of -$0.19 per share. This represents a beat of about 20.83%. The company also topped our revenues consensus, which predicted sales totaling $165 million for the quarter. SSYS actually reported sales of $173 million, beating our revenues consensus estimate by about 5%.
These are great beats, but there needs to be more perspective put around why shares are up 17% today.
In spite of the unhealthy macroeconomy, Stratasys beat expectations by a wide margin. This has bolstered hope in the company’s ability to be a strong growth candidate this year.
SSYS results were so optimistic that its fellow 3D printing peers’ shares have risen today as well. Voxeljet VJET and 3D Systems DDD have seen their shares rise by 7% and 6%, respectively. This could mean that SSYS’s earnings results have made its own industry look more attractive.
What’s really lifting the stock up today is its optimistic outlook on itself in 2016. This year, the company expects to see EPS between $0.17 and $0.43 this year. This is a huge improvement on our fiscal 2016 consensus going into the report, which currently calls for a loss of $-0.56. This consensus is subject to change.
If SSYS manages to live up to its lofty expectations this year, the stock will likely experience positive share price performance. Over the quarter, Stratasys cut its workforce by about 10% in an effort to reduct operating costs. The company is focused on optimizing manufacturing so that it can boost its profit margins as it moves forward.
The 3D printing company saw revenues of $696 million in 2015, and has issued revenues guidance in a range from $700-$730 million. Stratasys is currently a Zacks Rank #3 (Hold), but this is subject to change following the earnings release.
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STRATASYS LTD (SSYS): Free Stock Analysis Report
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