Stratasys To Report Disappointing Quarter, Experts & Crowd Coincide

Stratasys, Ltd. SSYS is scheduled to report its first quarter financial results before the market opens on Monday, and experts and the crowd both expect to see huge declines in earnings.

According to Estimize, Wall Street analysts are modeling consensus earnings of $0.14 per share on revenue of $171.97 million. The crowd is more bearish, anticipating earnings of $0.11 per share on revenue of $176.97 million.

These estimates compare to the earnings of $0.48 per share on revenue of $217.11 million reported last quarter, and earnings of $0.40 on revenue of $151.2 million registered in the first quarter of 2014.

The chart above features a history of Stratasys’ actual earnings compared to consensus estimates. The company has tended to beat the Street’s expectations in seven of the last eight quarters.

A second graph illustrates the evolution of estimates over time. Consensus for both the crowd and the Street has been falling consistently over the past few months.

What Analysts Are Saying

Last week, Stratasys disappointed investors with its Q1 preliminary results. Following the announcement, several major Wall Street research firms weighed in.

Related Link: What's The Street Think Of Stratasys Now?

Morgan Stanley highlighted the five reasons the company gave for the shortfall, which included “capital spending constraints, currency, new product introductions, and a slower channel ramp in Asia.” The analysts add, “However, in our opinion most concerning reason is the consolidation within the channel. The 3D printing industry is believed to be in the early stages of adoption which is inconsistent with go-to-market consolidation trends.”

Analysts at Jefferies were also disappointed. “We estimate SSYS's core product revs (i.e., ex MakerBot) were down Y/Y (a sharp deceleration vs. +26% in Q4), and 2015 guidance implies only mid-single digit growth (vs. prior guide >25% and 2014's +32%)."