Stratasys, an Israeli provider of 3D printing and additive manufacturing solutions, has seen experts change it stock’s status from buy to hold after releasing its third quarter earnings report. This while the company launched six PolyJet 3D printers with compact and mid-size build envelopes, expanding the accessibility to triple-jetting technology.
Its total revenue for the third quarter of 2014 was $204 million, which included a 35% increase organically when compared to the same period last year and a 62% increase when including revenue from acquisitions. Revenue from MakerBot branded products and services increased by over 80% when compared to the pro forma revenue that MakerBot generated during the third quarter of 2013. MakerBot product and service revenue is calculated as organic revenue beginning on August 15, 2014.
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During the third quarter, Stratasys closed the acquisitions of Solid Concepts and Harvest Technologies. The company also announced and closed the acquisition of GrabCAD, a leading cloud-based platform for 3D CAD users that provides tools to facilitate 3D design collaboration. Additionally, Stratasys established MakerBot Europe by acquiring MakerBot’s German distributor, HAFNER’S BÜRO.
“Our organic revenue growth in the third quarter was an impressive 35%, as demand for our industry-leading products and services remained very strong, ” said David Reis, chief executive officer of Stratasys. “We believe this trend validates our leadership position, supports our strategic initiatives, and reflects favorably on the contributions made by our recent acquisitions. As MakerBot sales continue to impress, sales of our higher-margin products remained a key growth driver during the third quarter, which had a positive impact on margins during the period. Overall, we are very pleased with our third quarter results, as we continued to recognize strong demand across a wide range of products and applications.”
But TheStreet disagrees, giving the company a C+. “We rate STRATASYS a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company’s earnings per share.”
