Stratasys, Inc.(SSYS)- NASDAQ
  • Mon, Apr. 25, 7:34 PM
    • Contract manufacturer Jabil (NYSE:JBL) will now handle the production of MakerBot's desktop 3D printers. MakerBot will shut down its Brooklyn manufacturing ops and lay off an undisclosed number of workers. Other MakerBot teams will remain in Brooklyn.
    • MakerBot CEO Jonathan Jaglom: "It’s a specific, painful decision in the sense that we’re going to have to let some people go, but it’s captured over a much broader strategic decision ... We need to be able to manufacture printers on a much higher volume in the coming years."
    • MakerBot has been the subject of multiple layoffs and Stratasys (NASDAQ:SSYS)  write-downs since Stratasys bought the company for over $400M in 2013. However, it’s still a top player in a market for desktop 3D printers that’s outgrowing the broader 3D printing/additive manufacturing market. Research firm Wohlers recently estimated desktop 3D printer shipments rose nearly 70% in 2015 to 278,385.
    • Stratasys has been looking for ways to cut costs amid a 3D printing industry downturn driven by excess capacity at industrial printer buyers. GAAP operating expenses rose only 4% Y/Y in Q4.
    | Mon, Apr. 25, 7:34 PM | 2 Comments
  • Fri, Apr. 15, 8:59 AM
    • Stratasys (NASDAQ:SSYS) and 3D Systems (NYSE:DDD) have sunk premarket -- by 3.6% and by 3.8% respectively -- after a Citi update on 3D printing downgraded both stocks on valuation.
    • Analyst Kenneth Wong downgraded 3D Systems to Sell, while boosting its price target after yesterday's pop, to $15 from $10 -- about 18% below yesterday's closing price of $18.27.
    • The company's hire of CEO Vyomesh Joshi is welcomed, but upside looks overstated, Wong says -- and the prospect of an acquisition by HP is "highly unlikely."
    • Stratasys gets a downgrade as well, to Neutral; "near-term upside is limited" as industry checks look soft. While unit volumes have held up, Wong says, there looks like a shift toward buying lower-priced systems, and service bureau utilization looks lower than usual.
    • Now read Stratasys: Game Changing Printer? »
    | Fri, Apr. 15, 8:59 AM | 14 Comments
  • Mon, Mar. 14, 9:22 AM
    • 3D Systems (NYSE:DDD) is up 15.3% premarket to $13.32 after (belatedly) posting a large Q4 beat. The numbers come 11 days after rival Stratasys delivered a Q4 beat and issued strong guidance, and are stoking hopes the 3D printing industry, hit hard last year as clients worked through excess capacity, is finally bottoming.
    • 3D didn't provide any formal guidance in its earnings release. Interim CEO Andrew Johnson: "While market conditions remain challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter ... We are continuing an extensive and comprehensive review of our business and strategy and taking steps to better prioritize our resources and focus our investments."
    • Q4 details: Product revenue fell 10% Y/Y to $116M. Services revenue rose 16% to $67.4M. Gross margin was 47.7%, +80 bps Q/Q and -20 bps Y/Y. GAAP operating expenses rose a modest 4% Y/Y to $88.9M - $66.5M was spent on SG&A, and $22.4M on R&D.

      A $537.2M impairment charge was recorded. 3D ended 2015 with $155.6M in cash and almost no debt.
    • Stratasys (NASDAQ:SSYS) is up 6.5% premarket. ExOne (NASDAQ:XONE) is up 1.1%. Voxeljet (NYSE:VJET) is up 3.9%.
    • 3D Systems' Q4 results, earnings release
    | Mon, Mar. 14, 9:22 AM | 12 Comments
  • Mon, Mar. 7, 9:17 AM
    • Believing markets are now pricing in "unrealistic expectations" in light of cyclical uncertainty and growing 3D printing competition, JPMorgan's Paul Coster has downgraded Stratasys (NASDAQ:SSYS) to Underweight, while hiking his target by $1 to $22.
    • Coster had a $125 target on Stratasys when he upgraded to Overweight in March 2014 (shares were then at $106.45). Today's downgrade follows a two-day rally during which Stratasys rose 32% (and also took many peers higher) in response to a Q4 beat and largely above-consensus 2016 guidance.
    • SSYS -4.1% premarket to $26.51.
    | Mon, Mar. 7, 9:17 AM | 2 Comments
  • Fri, Mar. 4, 11:34 AM
    • Is the bottom finally in? Stratasys (SSYS +18.6%) is now up 39% since beating Q4 estimates and issuing strong 2016 sales/EPS guidance on Thursday morning. 3D Systems (DDD +9.2%) and ExOne are up 16%, and Voxeljet (VJET +7.4%) is up 18%. As with prior big moves higher for 3D printing firms, short-covering is likely playing a big role.
    • Compared with the more bullish tone shown at higher levels, analyst reactions to Stratasys' numbers have been mixed. Piper's Troy Jensen (Overweight rating), who reported in January 3D printing demand was beginning to remove after months of weakness, likes Stratasys' cost-cutting efforts, and thinks interest and demand for the company's products is healthy. However, Deutsche's Sherri Scribner (Hold rating) argues an industry printer glut prevent a major 2016 demand rebound from occurring.
    • Pac Crest's Weston Twigg also isn't yet sold on a near-term demand recovery. Materialise (MTLS +4%), which posted a Q4 beat on Wednesday, is his favorite 3D printing idea. "Materialise ... benefits from high growth in its software and printing services, even as demand for 3D printers has remained soft ... Over the long term, Materialise should be a central figure in the transition to 3D printed prosthetics, where it provides key surgical planning software, collaborative partnerships, and printed surgical guides and implants."
    | Fri, Mar. 4, 11:34 AM | 13 Comments
  • Thu, Mar. 3, 10:05 AM
    • Stratasys' (SSYS +9.3%) Q4 beat has been accompanied by guidance for 2016 revenue $700M-$730M and EPS of $0.17-$0.43, largely above consensus estimates of $700.6M and $0.18. At the midpoint, the sales guidance implies 2% Y/Y growth.
    • With industry demand weak, product revenue fell 26% Y/Y in Q4 to $124.3M. Services revenue rose 1% to $49.1M. Non-GAAP gross margin fell to 48.1% from 56% a year ago; 2016 GM guidance is at 54%-55%.
    • Boosting EPS: Operating expenses fell 4% to $92.3M. Stratasys ended 2015 with $258M in cash and no debt. The company expects to spend $60M-$70M in 2016 on capex.
    • Stratasys: "Our goal is to maintain our leadership position in prototyping, while developing a solutions-based business model that targets key vertical markets and emerging applications for end-use parts ... Given the current environment, we recognize the importance of optimizing our cost structure and improving our financial performance, and have made those goals a priority for 2016."
    • 3D printing peers 3D Systems (DDD +5.4%), Voxeljet (VJET +5.3%), ExOne (XONE +4.9%), and Materialise (MTLS +5.1%) are also higher.
    • Stratasys' Q4 results, earnings release
    | Thu, Mar. 3, 10:05 AM | 5 Comments
  • Thu, Mar. 3, 9:15 AM
    | Thu, Mar. 3, 9:15 AM | 1 Comment
  • Thu, Mar. 3, 7:06 AM
    • Stratasys (NASDAQ:SSYS): Q4 EPS of -$0.01 beats by $0.11.
    • Revenue of $173.36M (-20.2% Y/Y) beats by $5.05M.
    • Shares +5.07% PM.
    | Thu, Mar. 3, 7:06 AM | 4 Comments
  • Wed, Mar. 2, 5:30 PM
    | Wed, Mar. 2, 5:30 PM | 11 Comments
  • Tue, Mar. 1, 1:48 PM
    • Continuing a recent rally, beaten-down 3D printing stocks are outperforming on a day the Nasdaq is up 2.4%, and the S&P 2.1%.
    • Belgian 3D printing software/services firm Materialise (MTLS +16.3%), which reports tomorrow morning, is the biggest gainer. This morning, Materialise announced a software/services platform (the Mimics Care Suite) for enabling 3D printing in hospitals.
    • 3D printer makers 3D Systems (DDD +6.5%), Stratasys (SSYS +7.6%), ExOne (XONE +5.6%), and Voxeljet (VJET +5.9%) are also doing quite well. Stratasys reports on Thursday morning; 3D was due to report yesterday, but recently delayed its Q4 report and 2015 10-K filing to give itself more time to do work related to a Q4 impairment charge.
    • Though still trading at a fraction of their early-2014 highs, 3D is now up 89% from a Jan. 20 low of $6.00, and Stratasys up 40% from a Feb. 12 low of $14.48. The companies respectively had 29% and 20% of their floats shorted as of Feb. 12. However, those numbers are down noticeably from a few months ago.
    | Tue, Mar. 1, 1:48 PM | 2 Comments
  • Thu, Feb. 11, 9:13 AM
    • Stratasys (NASDAQ:SSYS) has risen to $16.75 premarket after 3D Systems (up 12.4%) announced it expects to report Q4 revenue of $183M (above a $161M consensus, but still down from $187.4M a year ago). 3D nonetheless cautioned industry conditions remain challenging, and expects to take a $510M-$570M Q4 goodwill/intangibles impairment charge.
    • Stratasys closed yesterday less than a dollar above a multi-year low of $14.88 (set on Jan. 26). 10.7M shares were shorted as of Jan. 29, down from a September high of 13.5M but still equal to 21% of the float.
    | Thu, Feb. 11, 9:13 AM | 2 Comments
  • Thu, Feb. 4, 2:23 PM
    • German 3D printer maker Voxeljet (VJET +8.9%) is up 10% since guiding on Tuesday afternoon for 2016 revenue of €28M-€30M ($31.4M-$33.6M), slightly below a €30.4M consensus but above 2015 guidance of €23M-€24M and perhaps better than feared in light of recent industry woes.
    • Beaten-up peers have also been doing well, perhaps with the help of profit-taking from shorts. 3D Systems (DDD +8%) is up 23% over the last two days, Stratasys (SSYS +4.3%) is up 10%, and ExOne (XONE +12.1%) is up 20%.
    • Voxeljet is now aiming for a 25%-30% Y/Y long-term revenue growth rate. Gross margin is expected to rise to 40%-42% in 2016 - GM for the first 9 months of 2015 was only 33.3% - and full-year EBITDA is expected to be "neutral-to-positive." 3D and Stratasys are expected to post Q4 results in the coming weeks.
    | Thu, Feb. 4, 2:23 PM | 9 Comments
  • Tue, Jan. 26, 8:01 AM
    • Believing sales and earnings could disappoint through mid-2016, JPMorgan's Paul Coster has downgraded Stratasys (NASDAQ:SSYS) to Neutral, and cut his target by $5 to $19.
    • Coster, who upgraded to Overweight in March 2014 (Stratasys was at $106.45 at the time), now sees a lack of catalysts for the next six months. He's also worried about a "rapid influx of competing solutions" in the low-end 3D printing market - plenty were shown off once more at CES.
    • Stratasys has dropped to $16.19 premarket, making new multi-year lows along the way. Shares sold off yesterday after Jefferies cut its target and 2016 estimates, while reiterating a Buy rating.
    | Tue, Jan. 26, 8:01 AM | 5 Comments
  • Mon, Jan. 25, 10:34 AM
    • Citing Asian weakness and forex swings, Jefferies' Jason North has respectively cut his Stratasys (SSYS -4.6%) and 3D Systems (DDD -2%) targets by $7 and $3.50 to $30 and $7.50, while also lowering 2016 estimates. Stratasys remains rated a Buy, and 3D a Hold.
    • Stratasys and 3D are both expected to deliver Q4 reports in the coming weeks. North's cuts come six days after Piper's Troy Jensen reported (citing checks with 3D printing resellers) printer demand remained soft in Q4, as prototyping clients continued digesting excess capacity. However, Jensen (cautious for some time about demand) added industry contacts suggest demand is starting to improve, and that pipelines are strong going into 2016.
    • Stratasys now trades for just 1.2x a 2016 sales consensus of $720.3M. Likewise, 3D trades for 1.2x a 2016 sales consensus of $660.3M.
    | Mon, Jan. 25, 10:34 AM | 13 Comments
  • Mon, Jan. 4, 12:13 PM
    • The Nasdaq is down 2.8% and the S&P 2.3%, but someone forgot to tell beaten-down 3D Systems (NYSE:DDD) and Stratasys (NASDAQ:SSYS), which are both rallying on healthy volume. 3D has already seen 3.46M shares traded, topping a 3-month daily average of 3.11M.
    • 3D's gains come in spite of a Saturday Barron's column that highlights the views of William Blair's Brian Drab (Underperform rating), who thinks shares could fall as low as $3 (their tangible book value). Barron's also notes 3D's recent consumer exit, suggests the company's CEO search adds uncertainty, and declares the company to have "substantial competition" in industrial 3D printing.
    • Drab is only a little more positive on Stratasys, which he maintains a Market Perform rating for. "You get the sense they underestimate the competition and overestimate the market potential. That isn’t a good combination."
    • Separately, 3D has unveiled the ProX DMP 320, a direct metal printer said to be optimized for "critical applications requiring complex, chemically-pure titanium, stainless steel or nickel super alloy parts."  The 320 sports a 275mm x 275mm x 420mm build volume, and comes in configurations respectively optimized for titanium and stainless steel/nickel alloys. It will be shown off at CES (runs from Jan. 6-9).
    | Mon, Jan. 4, 12:13 PM | 6 Comments
  • Dec. 28, 2015, 3:57 PM
    • Stratasys (SSYS -6.1%), ExOne (XONE -8.1%), and Voxeljet (VJET -6.2%) joined 3D Systems (DDD -9.4%) in selling off today after 3D announced it's exiting the consumer 3D printing space and discontinuing its $999 Cube 3D printer.
    • The consumer 3D printing market has been slower to take off than many bulls once hoped, and has seen a slew of startups enter the field. Stratasys has taken multiple charges on its MakerBot unit, whose printers are priced from $1,375-$6,499 and target consumers, enthusiasts, and SMBs.
    • Today's declines come five days after 3D printer makers rallied strongly in pre-Christmas trading.
    • Update: Citi's Kenneth Wong thinks 3D's exit, along with the sales estimate it provided for its consumer business (~2% of total revenue), doesn't reflect well on the market. "First, the numbers reveal a much smaller consumer end market than many were led to believe given the considerable investments made in this segment. We believe this point will also be viewed negatively as it relates to Stratasys’ Makerbot business as it paints a less favorable picture of a market rebound. Second, investors were likely hoping for deeper cuts to the Cube line than simply exiting “only” ~20% of the reported “Consumer” business line."
    | Dec. 28, 2015, 3:57 PM | 19 Comments