The stupendous run of the 3D printing solution providers such
The ExOne Company
) in the previous year came to an abrupt halt after some of them
provided lower-than-expected guidance.
In 2013, Stratasys, 3D systems and ExOne generated returns of
45.4%, 115.1% and 114.4%, respectively, compared to a decline of
8.3%, 4.7% and 9.1% in 2014, year-to-date. Another
recently-listed 3D printing company
) was down 5.4% year-to-date.
The major sell-off took place on Tuesday as ExOne lowered its
fiscal 2013 revenue guidance and Stratasys provided a
lower-than-expected fiscal 2014 forecast. Panic set in and almost
all 3D printing stocks were affected.
Stratasys' 2014 guidance indicated that operating expenses
would increase significantly due to the incremental investments
in sales & marketing and research & development.
Moreover, Stratasys expects second-half fiscal 2014 non-GAAP net
income to be governed by the rate of adoption of its new products
and changing schedules of operating expenses.
Encouragingly, Stratasys expects fiscal 2014 revenues to range
between $660 million-$680 million, higher than the fiscal 2013
revenue forecast of $470 million to $490 million. Additionally,
the company expects strong organic revenues. Despite these
optimistic forecasts, the company's stock was downgraded to a
Zacks Rank #5 (Strong Sell). This when accompanied by a 0.00%
does not indicate a favorable forecast for the current
Another stock that is in the news is ExOne which lowered its
FY13 revenue guidance to a range of $40 million to $42 million
from $48 million on account of deferment of machine sales to
2014. However, the company remained positive on organic top-line
growth which is expected to be in the range of 40% to 50%.
In the trailing four quarters, ExOne posted an average 14.3%
positive earnings surprise. However, for the current quarter, the
company's Zacks Rank #3 (Hold) and Zacks Earnings ESP of 0.00%
makes surprise prediction difficult.
The other two stocks, 3D Systems and Voxeljet, carry a Zacks
Rank # 3 (Hold) and a Zacks Earnings ESP of 0.00%. Thus, we are
taking a wait-and-see approach to the current quarter as regards
these 3D printing stocks.
As such the 3D printing companies operate within a high-cost
structure and any sort of disruption in the top line is likely to
impact their overall results. Moreover, 3D printing is a
relatively new concept and is likely to take time to gain
Nonetheless, the 3D printing market presents a favorable
long-term opportunity as a large number of engineers, designers,
architects and entrepreneurs are resorting to 3D solutions for
their primary designing and product modeling. We therefore think
that the adoption rate and cost control measures will be
important factors determining the fortune of companies in this
3D SYSTEMS CORP (DDD): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
VOXELJET AG-ADR (VJET): Free Stock Analysis
EXONE CO/THE (XONE): Free Stock Analysis
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