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Fly News Breaks for October 21, 2019
SSYS
Oct 21, 2019 | 08:48 EDT
William Blair analyst Brian Drab names Stratasys his best short idea into the Q3 earnings season. The stock will likely move lower on the company's third-quarter report, Drab tells investors in a research note. He expects Stratasys to miss on revenue and cuts its guidance. Just to hit the low end of the revenue range, Stratasys would need to report a sequential revenue increase of about 10% in the second half of the year compared with the first half, the analyst notes. He sees a "not overly bearish" scenario of the company reporting 2019 revenue of $640M, well below the $670M low end of the guidance range. This would translate to 2019 earnings per share in the 45c-55c range, below the low end of the company's 55c-70c guidance range, says Drab. Although the stock is down about 25% from the Q2 earnings call, the analyst still sees further downside on the Q3 report. He keeps an Underperform rating on Stratasys.
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