On Monday, Craig-Hallum adjusted their expectations for Stratasys Inc. (NASDAQ:SSYS) shares, a leader in 3D printing technology. The firm's analyst has reduced the price target to $14.00, a decrease from the previous $16.00, while still holding a positive outlook with a Buy rating.
The revision follows a recent industry event, RAPID, where Craig-Hallum's analyst had the opportunity to engage with Stratasys' management team. During this interaction, no significant shift in the company's tone was detected, and the analyst continues to anticipate a revenue increase in the latter half of the year.
This expected growth is attributed to seasonal trends, successful conversion of the sales pipeline, and notably, the anticipated impact of Stratasys' new product, the F3300.
The analyst anticipates that the F3300 will not contribute substantially to the second quarter's financial results. However, based on the company's discussions, there is a robust and expanding pipeline for the product that is projected to translate into a notable increase in revenue during the third and fourth quarters.
In light of these expectations, the firm has also revised its second-quarter estimates to better align with the seasonal patterns and insights gleaned from Stratasys' first-quarter earnings call.
However, apart from this adjustment and its subsequent effect on the growth forecast for the fiscal year 2025, the other financial projections for Stratasys remain largely unchanged.
In other recent news, Stratasys Ltd. reported a slight decline in revenue in its first quarter earnings call for 2024, with consolidated earnings standing at $144.1 million, a 3.5% decrease from the same period the previous year.
Despite this, the company maintained its full-year revenue guidance. Notably, the company experienced a record high in consumables recurring revenue and an expansion of gross margins to 44.4%.
Stratasys also introduced the F3300 printer and new SAF HighDef printing capabilities, alongside the promotion of Amir Kleiner to COO. The company's GAAP net loss was reported at $26 million, with a non-GAAP net loss of $1.7 million.
The company's full-year guidance remains unchanged, with revenues expected to be between $630 million and $645 million. These are the latest developments in Stratasys Ltd.'s recent business activities.
InvestingPro Insights
The recent adjustment of Stratasys Inc.'s (NASDAQ:SSYS) price target by Craig-Hallum coincides with a complex financial picture for the company, as reflected in the latest InvestingPro data. With a market capitalization of $593.1 million and a negative Price/Earnings (P/E) ratio of -4.5, Stratasys presents a challenging investment landscape. The company's revenue has experienced a slight decline of 2.38% over the last twelve months as of Q1 2024, indicating that while the analyst expects a revenue increase in the latter half of the year, recent history shows a need for cautious optimism.
Despite the challenges, two InvestingPro Tips suggest potential for future growth: Stratasys holds more cash than debt on its balance sheet, and net income is expected to grow this year. These factors could provide the company with the financial flexibility to capitalize on the anticipated success of its new F3300 product. Additionally, the company's liquid assets exceed short-term obligations, which may offer some stability despite the stock trading near its 52-week low.
For investors seeking a deeper analysis, there are over 10 additional InvestingPro Tips available, which can be accessed with a subscription. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing further insights into Stratasys' financial health and performance metrics.
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