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Why Stratasys Stock Dropped 10.6% in September

By Beth McKenna - Oct 5, 2019 at 4:40PM

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Shares of the 3D printing company significantly underperformed both the market and shares of rival 3D Systems last month.

What happened

Shares of Stratasys (SSYS -0.32%) fell 10.6% in September, according to data from S&P Global Market Intelligence. In 2019, the 3D printing stock is up 10.8% through Oct. 4. 

For context, last month shares of main rival 3D Systems (DDD -1.14%) gained 16.4% and the S&P 500 returned 1.9%. So far for the year, 3D Systems stock is down 22.7%, while the broader market has returned 19.6%.

Close-up of a 3D printer printing a yellow plastic object on a blue-lighted surface.

Image source: Getty Images.

So what

There doesn't seem to be any company-specific news behind Stratasys stock's September decline. It's possible that some investors believed the stock didn't fall enough after the company released its second-quarter results on July 31. 

In Q2, Stratasys' revenue slipped 4.1% year over year to $163.2 million, falling short of the $168.7 million Wall Street was expecting. Adjusted for one-time items, earnings per share (EPS) edged up 6.7% to $0.16, slightly topping the $0.15 consensus estimate. 

Now what

Investors shouldn't have long to wait for material news. While the company hasn't yet announced a date, we can probably expect it to release its third-quarter results at the tail end of this month or very early next month. For Q3, the Street is expecting an exact replica of the year-ago period's headline numbers. Analysts are projecting adjusted EPS of $0.11 on revenue of $162 million, which are the same results Stratasys delivered in the third quarter of last year.

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Stratasys Ltd. Stock Quote
Stratasys Ltd.
$18.84 (-0.32%) $0.06
3D Systems Corporation Stock Quote
3D Systems Corporation
$11.31 (-1.14%) $0.13

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