Stratasys Misses Mark On Earnings
3D printing manufacturer Stratasys failed to impress investors in its latest quarterly report with revenue crimped by product rollouts.
Revenues soared to $217 million for the quarter ending Dec. 31, up 40 percent from the same period last year. But that fell short of analysts’ expectations of $218 million and the company reported a $92 million net loss ($1.81 per share) on the quarter.
The company’s MakerBot line of 3D printers proved to be the thorn in its side, according to executives.
“During the fourth quarter, MakerBot was affected by challenges associated with the introduction and scaling of its new product platform and its rapidly evolving distribution model,” CEO David Reis said in a statement, adding that he expects growth of the line to ramp up by 2016.
Share prices for the Eden Prarie-based 3D company have tumbled for months, with its current price of $63.20—as of midday Monday—about half of September’s high.
Because of continually lowered earnings estimates and poor financials, Zacks recommended dumping the stock before “more losses hit your portfolio.”
Still, Zacks added that if the company puts corrective action into place, they would be “well poised to grab maximum market share given its sizable installed base.”
Stratasys said its 2015 guidance includes revenue of $940 million to $960 million and adjusted net income of $109 million to $118 million, or $2.07 to $2.14 per share. That exceeds analysts’ projections of about $1.84 per share.
Stratasys recently announced it was combining several of its indirect subsidiaries—Solid Concepts, Harvest Technologies and RedEye—to form Stratasys Direct Manufacturing.
The combination of the companies is expected to make them more competitive and better able to meet the needs to customers in an increasingly competitive landscape.