) hit a new 52-week high of $134.87 on Dec 31, eventually closing
at $134.70. The closing share price represents a strong one-year
return of 65.5%. The average trading volume for the last three
months aggregated 1,117K shares.
Stratasys has delivered positive earnings surprises in two of the
last four quarters, with an average beat of 284.3%. This
Zacks Rank #1 (Strong Buy) company has a market cap of $6.57
billion with long-term earnings growth expectations of 23.1%.
Stratasys' product launches and global expansion are expected to
provide adequate support to revenue growth. Moreover, the
MakerBot acquisition, better-than-expected sales on the back of
solid performances from its Product and Services segments and the
upward revision of the revenue outlook are some of the catalysts
driving the stock.
On Nov 7, Stratasys reported decent third-quarter 2013 results.
The top-line increased 38.7% year over year and surpassed the
Zacks Consensus Estimate, primarily due to revenue growth in both
Products and Services on the back of higher demand, team
integration and cross-selling activities. Its cash and cash
equivalents stood at $414.9 million compared with $148.9million
in the previous quarter. However, the company suffered a
wider-than expected loss in terms of the bottom line.
Nonetheless, management provided an encouraging outlook for
fiscal 2013. Revenues are expected to range between $470 million
and $490 million, up from the previous guidance of $455.0 million
to $480.0 million. Stratasys' earnings are anticipated in the
range of $1.75 to $1.90 per share, significantly higher than the
Zacks Consensus Estimate of $1.43 per share.
Furthermore, with the assimilation of Stratasys' 3D printing
application programming interface into
) Windows 8.1, its adoption rate is likely to increase. However,
the company is concerned about its high-cost business model and
competition from big and small players like
3D Systems Corp.
Over the last 60 days, Stratasys witnessed one upward revision
(out of three estimates) for the current quarter as well as for
fiscal 2013.This led to a significant increase of 39 cents in the
Zacks Consensus Estimate for the current quarter, which now
stands at 41 cents. In addition, for the full year, the Zacks
Consensus Estimate jumped significantly to $1.43.
Investors may also consider another stock,
Western Digital Corporation
), carrying a Zacks Rank #1 (Strong Buy).
3D SYSTEMS CORP (DDD): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
To read this article on Zacks.com click here.