Why Stratasys Stock Dropped Today
In early trading Wednesday, Stratasys (NASDAQ: SSYS) stock looked to be heading for disaster -- down more than 16% after beating on earnings but missing on guidance in its latest earnings report, released this morning. As of 11:30 a.m. ET, however, the stock market rally appears to be turning things around for the 3D printer maker, and its shares are now down only 3.7%.
Analysts had forecast that Stratasys would lose $0.01 per share (adjusted) in its fiscal second-quarter 2022, on sales of $166.3 million. In fact, the company reported an adjusted profit of $0.02 per share, and its sales came in above expectations at $166.6 million -- up 13% year over year.
That all sounds like good news, but here's where things start going bad. "Adjusted" profits are not the same thing as profits that are calculated according to generally accepted accounting principles (GAAP). By that measure, Stratasys actually was not profitable at all. With gross profit margins sliding by 250 basis points in Q2, Stratasys lost $0.37 per share according to GAAP -- way more than even analysts' predicted loss of $0.01 per share and a loss 19% bigger than what Stratasys reported a year ago. The company was also free-cash-flow (FCF) negative in the quarter.
Source Fool.com
