Please ensure Javascript is enabled for purposes of website accessibility

Why Stratasys Stock Tanked Today

By Evan Niu, CFA - Feb 27, 2020 at 3:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The 3D printing specialist reported fourth-quarter earnings.

What happened

Shares of Stratasys (SSYS -2.24%) tanked today, falling 13% after the company reported fourth-quarter earnings. The bottom line missed consensus estimates.

So what

Revenue in the fourth quarter came in at $160.2 million, which resulted in adjusted net income of $10 million, or $0.18 per share. Analysts were hoping for $0.20 per share in adjusted profit. The 3D printing technology company had appointed a new CEO, Yoav Zeif, back in December. He took over the role last week.

A 3D-printed pineapple

Image source: Getty Images.

"Since joining Stratasys I have taken the opportunity to begin an in-depth review of the business and am already impressed by the deep level of knowledge, professionalism, and dedication exhibited at all levels of the organization," Zeif said in a statement. "I strongly believe in the solid foundation for growth that has been created at Stratasys, including an innovative and expanding product portfolio, disciplined financial management, and the industry's leading distribution partners."

Now what

Stratasys issued guidance for 2020 that calls for revenue of $620 million to $680 million, compared to the $636.1 million in sales in 2019. Wall Street is modeling for $644 million in revenue in 2020. Capital expenditures this year are expected to be in the range of $40 million to $60 million, and the company expects adjusted net income of $25 million to $34 million, or $0.45 to $0.60 per share.

"Starting in the back half of this year we expect to introduce our next phase of growth with a notable step-change in our portfolio as we begin to launch a series of new products for both manufacturing and design prototyping solutions," the new chief executive added. "I am extremely optimistic regarding the outlook of the business, and I believe that there is tremendous potential to drive significant near-term and long-term value for all of our stakeholders."

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Stratasys Ltd. Stock Quote
Stratasys Ltd.
SSYS
$18.74 (-2.24%) $0.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.