Stratasys (SSYS) PT, Estimates Cut at Stifel
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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.
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