Why Stratasys, Ltd. Shares Sank

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Stratasys  (NASDAQ: SSYS  )  fell more than 10% during Wednesday's intraday trading, then pared its losses to close down around 6% after industry peer 3D Systems reported disappointing preliminary earnings and forward guidance.

So what: You read that right: Apart from merely setting the date for its own March 3 quarterly earnings announcement, Stratasys released no significant news today. Instead, it was guilty by association with 3D Systems, shares of which plummeted after the company blamed higher investments in sales, marketing, and R&D for lower-than-expected earnings in both Q4 and full-year 2014.

To be fair, Stratasys did almost the exact same thing three weeks ago, telling investors to expect full-year 2014 non-GAAP net income of $2.15-$2.25 per diluted share, or significantly below average estimates for earnings of $2.33 per share.

Now what: However, also like 3D Systems, Stratasys expects 2014 revenue to come in the range of $660 million-$680 million, which was well above expectations a few weeks ago for 2014 sales around $656.83 million -- and that, of course, is the expected byproduct of both companies' investments as they jockey for the lead in the fast-growing additive manufacturing industry.

Considering nothing has happened today to change Stratasys' long-term story, that's why I still think investors would be wise to hold tight to their shares.

Consider the nine solid high-yielding stocks in this free report
If 3-D printing stocks are too volatile for your taste, don't worry!

One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2825847, ~/Articles/ArticleHandler.aspx, 8/30/2015 1:58:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
SSYS $30.02 Up +0.81 +2.77%
Stratasys CAPS Rating: ****