Thursday, May 23, 2013

Stratasys Impresses But Revenue Growth Needs Improvement


For such a hot sector, the 3D printing leaders are showing surprisingly low organic growth. Leader 3D Systems (DDD) reported only 22.1% organic growth for the latest quarter while Stratasys Ltd (SSYS) only managed 18% after merging with Objet. Those aren't exactly the growth rates expected of stocks with forward earnings multiples of over 35x estimates. The sector is very profitable and has huge potential, but several other sectors have higher growth rates.

For 3D Systems, the revenue growth numbers are even worse if you look at the revenue per share. That number only increased 9% year-over-year to $1.11 from $1.02 due to a higher share count. For an acquisitive company, this calculation takes out the impact of shares issued and such similar to earnings per share. For any shareholder, the more important fact isn't the actual top and bottom line growth, but the total growth per share.

Read the full article at Seeking Alpha.


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