Stratasys (SSYS) Up 6.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Stratasys (SSYS). Shares have added about 6.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Stratasys due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Stratasys, Ltd. before we dive into how investors and analysts have reacted as of late.Stratasys Q2 Earnings In Line With Estimates, Revenues Flat Y/YStratasys reported second-quarter 2025 non-GAAP earnings of 3 cents per share, which is in line with the Zacks Consensus Estimate. The company posted a non-GAAP loss of 4 cents per share in the year-ago quarter.Revenues were nearly flat year over year at $138.1 million. The figure beat the consensus mark by 0.48%.Stratasys’ Q2 Release in DetailSegment-wise, product revenues increased 1.3% year over year to $94.8 million. System revenues grew 5.5% year over year to $30.6 million. Consumables revenues decreased 0.6% year over year to $64.2 million.Services revenues declined 2.6% year over year to $43.3 million.Stratasys’ non-GAAP gross profit fell 2.7% year over year to $65.8 million. The non-GAAP gross margin contracted by 140 basis points (bps) to 47.7%.Operating expenses dropped 12.1% year over year to $76.1 million. Research & development expenses declined 22.4% year over year to $19.9 million. Selling, general & administrative expenses fell 7.7% year over year to $56.2 million.The non-GAAP operating profit was $1.1 million compared with an operating loss of $3.2 million in the year-ago quarter.Stratasys’ Balance Sheet & Cash Flow DetailsAs of June 30, 2025, Stratasys had cash and short-term deposits of $254.6 million compared with $150.1 million as of March 31, 2025.For the quarter ended June 2025, the company reported an operating cash flow of $1.1 million, compared to $2.4 million.Stratasys’ 2025 OutlookFor 2025, Stratasys expects revenues between $550 million and $560 million. Non-GAAP earnings are expected in the range of 13-16 cents per share.The company anticipates gross margin to be between 46.7% and 47%. The non-GAAP operating margin is expected to be in the range of 1.5-2%.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -950% due to these changes.VGM ScoresCurrently, Stratasys has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Stratasys has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerStratasys belongs to the Zacks Commercial Printing industry. Another stock from the same industry, 3D Systems (DDD), has gained 7.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.3D Systems reported revenues of $94.84 million in the last reported quarter, representing a year-over-year change of -16.3%. EPS of -$0.07 for the same period compares with -$0.14 a year ago.For the current quarter, 3D Systems is expected to post a loss of $0.11 per share, indicating a change of +8.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for 3D Systems. Also, the stock has a VGM Score of C.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stratasys, Ltd. (SSYS): Free Stock Analysis Report 3D Systems Corporation (DDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks