Investors bullish on Stratasys outlook
Shares of 3D printing firm Stratasys Ltd. Tuesday reached an all-time high of $104.34, just days after posting solid earnings and revenue for the second quarter.
The ExOne Company, a maker of 3D printing machines and printed products for industrial customers, on Tuesday also hit an all-time high of $78.80, just a couple hours before it released its second quarter results, after the closing bell.
But when it did, showing a net loss of $1.1 million, or $0.08 per share, missing analysts’ estimates of a loss of $0.06 cents per share, after hours investors hammered the stock, plunging it nearly 17 percent to $63.
Still, if you had any doubts about mainstream adoption of 3D printing, take a look at Stratasys’ results: $0.45 adjusted earnings per share (EPS) for the quarter, beating analysts’ consensus estimate of $0.44 by $0.01. Revenue was $106.5 million for the quarter, beating analysts’ expectations of $105.5 million.
Big Q2 highlights
Just in the last quarter, the company, which has dual headquarters in Eden Prairie, Minn., and Rehovot, Israel, completed the following:
- Received a multi-million-dollar order from an undisclosed “leading Fortune 500 company” for multiple Fortus 3D printers to make tools and end-use products and prototyping.
- Signed merger agreement with MakerBot, a leading manufacturer of 3D printing systems, for $403 million. Completed sales, marketing integration from merger with 3D printer maker Objet.
- New MakerBot unit signed retail partnership with Microsoft where “MakerBot Experience” in-store demos will be set up at 17 Microsoft stores nationwide. Microsoft announced in June Windows 8.1 will include 3D printing APIs and MakerBot was named an initial supporter.
- Signed deal to test market its uPrint SE Plus 3D printer in six initial UPS stores. UPS, with over 4,300 franchised locations, said it will be the nation’s first retailer to test in-store 3D printing services.
- 3D design and engineering software giant Autodesk has started bundling a one-year premium membership of its 123D software suite with a MakerBot Replicator 2 desktop 3D printer to create a “personal design factory.” The cost is $2,249.
3D printing hits mainstream
Considering the above, the mainstreaming of 3D printing doesn’t appear to be on the horizon, it’s here. It’s not surprising Stratasys forecast 2013 revenue in the range of $455 million to $480 million, way above estimates of $441 million and dwarfing 2012 revenue of $215 million. The company’s 52-week stock price ranges from $53.53 to Tuesday’s new all-time high of $104.34. Stratasys has a market capitalization of just over $4 billion.
“We believe this journey is similar to the evolution in personal computers,” David Reis, Stratasys CEO, said in a conference call with investment analysts Thursday. “What began as a kit-based product became a mainstream tool in business and industry as affordability, access and ease of use improved.”
UPS stores test marketing Stratasys 3D printers
The MakerBot merger, set to close this month, will dilute EPS for the year, Stratasys said, lowering to a range of $1.75 to $1.90 compared to the previous guidance of $1.80 to $1.95 diluted EPS.
Reis said the deal with Microsoft is just “another step in the overall adoption of additive manufacturing and 3d printers. It’s not a turning point, it’s one step in the process. It’s a very good indication of where we are going but nothing more than this.”
Asked about market share, Reis declined to provide an estimate saying, “none of the players are disclosing full numbers.
Stratasys shipped 1,261 3D printers in the quarter, up 16 percent from the 1,085 units shipped in the year-ago quarter, including Objet. On a combined basis, the company has shipped a cumulative 32,245 systems worldwide as of June 30.