Stratasys Tops Analysts Q3 Expectations, Issues Weak Guidance

Stratasys, Ltd. SSYS reported its third quarter results Wednesday morning. The 3D printing company improved its earnings per share by 29 percent from a year ago to $0.58 in the third quarter, which was a penny higher than analysts expected. Revenue increased 62 percent from a year ago to $203.60 million, topping analyst expectations of $195.50 million. Shares recently traded at $114.90, down 5.2 percent in the premarket. Non-GAAP Net income for the third quarter rose by 50 percent from a year ago to $30.1 million, as the company benefited from strong MakerBot-branded products and service sales that were 80 percent higher than they were a year ago. At the same time, Stratasys issued a weak full year fiscal 2014 guidance. The company expects its full year EPS to be in a range of $2.21 to $2.31, which appears weak given the consensus estimate of $2.30 per share. The company previously estimated it will earn $2.25 to $2.35 per share. Stratasys noted that its revised guidance reflects the recent acquisition of GrabCAD. The company also lowered its full year net income guidance to $115 to $120 million, lower than the $117 million to $122 million range the company previously expected. Revenue guidance remains unchanged for the full fiscal year at $750 million to $770 million.