Stratasys Sees FY14 Adj. EPS Below Street; Stock Tumbles - Update

(RTTNews) - 3D printing solutions provider Stratasys Ltd. (SSYS), Tuesday revealed a weak adjusted earnings outlook for fiscal 2014, citing higher spending on marketing and research, while revenues are expected to be buoyant due partly to acquisitions.

The announcement dampened investor sentiment, sending Stratasys stock tumbling about 11 percent on the Nasdaq.

Eden Prairie, Minnesota-based Stratasys expect 2014 net earnings in the range of $10.5 to $19.9 million, or $0.20 to $0.38 per share.

Excluding items, adjusted earnings in 2014 are expected in the range of $113 to $119 million, or $2.15 to $2.25 per share. On average, 21 analysts polled by Thomson Reuters currently expect earnings of $2.33 per share for the year. Analysts' estimates typically exclude special items.

The company said that adjusted earnings will be disproportionately spread out in the second half of 2014, due to operating expenses and the timing of projects.

Stratasys expects 2014 revenue of $660 million to $680 million, while twenty analysts currently expect $656.83 million.

CEO David Reis said revenue synergies accrue from its acquisition of Objet and strong growth is seen at its recent buyout of MakerBot.

In August, Stratasys completed its merger with MakerBot, a company engaged in desktop 3D printing. The deal is indicated with an initial value of $403 million plus earn-out payments.

Stratasys expects organic sales, which exclude MakerBot sales, to grow at least 25 percent over 2013, with additional growth coming from MakerBot.

The company cautioned that adjusted operating margins in 2014 are projected to remain consistent with the prior year, due mainly to lower margins at MakerBot.

Stratasys stock is trading at $115.90, down $14.10 or 10.85%, on a volume of 2.8 million shares on the Nasdaq. In the past year, the stock has traded in the range of $60.20 - $138.10.