Stratasys share price drops on Q3 earnings report

Stratasys have reported a six percent drop in revenue and as the 3D printing company provided its latest financial report the news was accompanied by double the decrease in equity. Losing more than 12% of value, Stratasys earned the title of one of the day’s biggest losers in the equity markets yesterday.

While share prices are rarely a strong indicator of long term viability, innovation or technical agility nonetheless they are a key metric for companies who choose to list publicly.

However, the advantages of a public listing can swiftly be eroded by the requirements imposed by market regulators and the necessity to present quarterly updates to investors, Stratasys (NASDAQ:SSYS) fell victim to these requirements yesterday after the company reported a 6% drop in revenue and markets responded with heavy selling activity, driving down the share price.

MakerBot sales at low level

MakerBot Replicator+ Image: MakerBot
MakerBot Replicator+ Image: MakerBot

In their latest earnings release for the quarter ended September 30, Stratasys report a fifth consecutive period of declining revenue. Total revenue was $157.2 million, down from $167.6 for the comparative figure in September 2015.

Revenue from the company’s MakerBot range was down by 29% reaching levels last seen in 2012.

Investment analyst consensus was that the company would report a loss, however the reported EPS of $0.40 was greater than expected.

On a call with investors and analysts CEO Ilan Levin explained that the company is engaged in cost cutting exercises. The result is to bring the net loss of the company to $21 million, the comparative figure was $901 million.

Earnings expectations lowered, new partnership to be announced

Revised guidance on full year earnings was also issued, with the company moving the range significantly. Previously investors were told to expect sales in the $700 – $730 million, on yesterday’s call guidance for net income was cut to $7 – $11 million.

Stratasys as Formnext 2016.
Stratasys as Formnext 2016.

CEO Levin will meet this morning with analysts and reporters as he visits the Formnext 3D printing analyst trade show in Frankfurt. Levin is expected to provide an update on strategy at the company and will also announce a strategic partnership with, “one of the world’s most recognised engineering giants,” according to a spokesperson for the company. The announcement will add to previously announced partnerships with Siemens, Boeing and automotive giant, Ford Motor Company and may be a further example of the two demonstrator technologies the company showed at IMTS Chicago in September, Infinite Build and the Robotic Composite machines. However, commercialization of these products is a longer term project.

3DPI will be in attendance and bring you more news as we have it.

Featured image shows a print on the Makerbot Replicator 2 Via: Solidsmack