Stratasys Hits 52 Week-High - Analyst Blog


Shares of Stratasys Inc. ( SSYS ) 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%.

Growth Drivers

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 Microsoft 's ( MSFT ) 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. ( DDD ).

Estimate Revisions

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 ( WDC ), carrying a Zacks Rank #1 (Strong Buy).

3D SYSTEMS CORP (DDD): Free Stock Analysis Report

MICROSOFT CORP (MSFT): Free Stock Analysis Report

STRATASYS LTD (SSYS): Free Stock Analysis Report

WESTERN DIGITAL (WDC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: DDD , MSFT , SSYS , WDC

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