Stratasys (SSYS) PT, Estimates Cut at Stifel
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Stifel analyst Patrick Newton lowered estimates and his price target on Stratasys Inc. (NASDAQ: SSYS) to $19.00 (from $23.00) following results. The firm maintained a Hold rating.
Newton commented, "Stratasys’ 3Q16 results included a significant revenue miss and lower than expected gross margin, resulting in the company reducing its 2016 guidance. Pro forma EPS was $0.00, comparing negatively to our estimate of $0.06 and consensus of $0.06. 3Q16 revenue was $157.2 million, well behind our forecast of $171.1 million and the consensus of $174.5 million. Gross margin underperformed in the quarter, coming in at 54.0% versus our 54.7% expectation, with the miss attributed to sales mix (less contribution from new J750 vs 2Q16). The lone silver lining from the quarter was management’s ability to control opex, with R&D expense flat sequentially and SG&A well below recent levels and our expectation. For 2016, management reduced its guidance ranges to revenue of $662-$673 million and non-GAAP EPS of $0.13-$0.21, indicative of a continuation of a challenged business environment through the end of the year. Management again noted elongated sales cycles and a weak demand environment persist across all regions and business units, and that nearly all near-term cost reduction initiatives have been completed. We maintain our Hold rating as we await any sort of visibility into improving fundamentals and gain more comfort in understanding GM% impacts from sales mix and volume."
The firm cut FY 2016 EPS from $0.38 to $0.18 and FY 2017 EPS from $0.70 to $0.60.
Shares of Stratasys Inc. closed at $20.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
- Jefferies Raises Price Target on US Physical Therapy (USPH) to $63 Following 12-Clinic Acquisition
- Jefferies Cuts Price Target on Eros Int'l (EROS) to $18 Following Multi-Year Deal
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!