News Column

Stratasys shares leap 15% after firm raises outlook

August 8, 2014

By Dee DePass, Star Tribune (Minneapolis)



Aug. 08--Stratasys Ltd. shares climbed sharply Thursday as the 3-D printer manufacturer raised its outlook following a stronger-than-expected second quarter.

Executives said the company saw strong sales for both its high-end products, chiefly used in factories, and its MakerBot products for consumers during the April-to-June period.

Stratasys shares finished up 14.9 percent at $113.69, off the intraday high of a 22 percent jump. The leap erased most of the decline the shares experienced over the past month. Stratasys shares nearly doubled last year and hit an all-time high of $136.46 this January.

The company, which has dual headquarters in Eden Prairie and Rehovat, Israel, is the biggest of several fast-growing firms who make 3-D printers. Such printers form objects from heated resin shot out in pellets that harden as they cool. They are chiefly used by manufacturers as in the prototyping process, but they hobbyists are buying consumer-grade versions that are priced as low as $800.

Stratasys said its MakerBot unit, which it acquired last year, accounted for about one-fifth of revenue in the latest period. Earlier this year, the unit began selling a "replicator" for consumers, which consists of a device that can scan a 3-D object and then duplicate its shape on a 3-D printer.

Also during the latest quarter, Stratasys acquired two companies, Solid Concepts and Harvest Technologies, that offer services related to manufacturing with 3-D printers.

The company's adjusted profit rose 51 percent to $28 million, or 55 cents a share, in the second quarter. That beat analysts' forecasts for a profit of 45 cents a share.

Revenue was up 67 percent to $178.5 million, well above analysts' expectation of $156 million.

"We expect our positive momentum to continue as we begin the second half of 2014," David Reis, the company's chief executive, said in a statement.

The company said it now expects its 2014 revenue to grow of 30 percent, not counting the effect of acquisitions. It previously forecast 25 percent growth in full-year revenue. Not counting the effect of acquisitions, its revenue grew 35 percent in the latest quarter.

Stratasys raised its profit outlook, adjusted for one-time items, to a range of $2.25 to $2.35 per share, up from its previous range or $2.15 to $2.25 a share.

Dee DePass -- 612-673-7725

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(c)2014 the Star Tribune (Minneapolis)

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Source: Star Tribune (Minneapolis, MN)


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