Stratasys Analysts Cut Their Forecasts After Q2 Results

Core Insights - Stratasys Ltd. reported worse-than-expected second-quarter sales and reduced its FY24 guidance [1] Financial Performance - Fiscal second-quarter 2024 revenue was $138.04 million, missing the analyst consensus estimate of $146.34 million [2] - Adjusted EPS loss was 4 cents, which beat the analyst consensus estimate of a 5 cent loss [2] - The company cut its FY24 revenue outlook to $570 million—$580 million from a prior estimate of $630 million—$645 million, against a consensus of $631.63 million [2] - Adjusted EPS outlook was lowered to $0.01-$0.05 from a prior $0.12-$0.19, versus the consensus of $0.15 [2] - Adjusted EBITDA outlook was reduced to $24 million—$27 million from a prior $40 million—$45 million [2] - Adjusted operating margins were lowered to 0.5%—1.0% from a prior 2.5%—3.5% [2] - The company expects positive cash flow from operating activities [2] Workforce and Cost Management - Stratasys plans to downsize its workforce by 15% by the end of 2024 to save $40 million in annual costs starting in Q1 2025 [2] Future Outlook - The company expects third-quarter revenue to be slightly higher than second-quarter revenue, which is below the $160.78 million consensus estimate [2] Stock Performance and Analyst Ratings - Stratasys shares dipped 9.9% to close at $6.92 following the earnings announcement [2] - Analysts adjusted their price targets post-earnings: - Needham analyst James Ricchiuti maintained a Buy rating, lowering the price target from $12 to $10 [2] - Lake Street analyst Troy Jensen maintained a Buy rating, lowering the price target from $15 to $11 [2] - Cantor Fitzgerald analyst maintained an Overweight rating, cutting the price target from $23 to $12 [2] - The consensus price target for Stratasys is $17.4 based on the ratings of 8 analysts, with a high of $80 and a low of $10 [3]