Why Stratasys Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of three-dimensional-printing technologist Stratasys surged 11% today after its quarterly results topped Wall Street expectations.

So what: Stratasys has surged over the past year on voracious demand for its products, and today's first-quarter beat -- adjusted EPS of $0.43 versus the consensus of $0.38 -- suggest that the trend isn't slowing. In fact, revenue for the quarter more than doubled to $97.2 million, reinforcing optimism over other 3-D printing plays -- 3D Systems and ExOne are both up about 5% -- as well.

Now what: For the full year, management said it still sees adjusted EPS of $1.80-$1.95 on revenue of $430 million-$445 million, versus the average analyst estimate of $1.89 and $436.9 million. "Although merger-related integration will remain a focus in 2013, our leading priorities remain serving our customers and investing in future growth," said CEO David Reis. "We remain excited about the many opportunities we see developing for Stratasys and our innovative products." With the stock now up more than 120% from its 52-week lows and trading at a forward P/E of 40, however, I'd wait for some of the exuberance to fade before buying those prospects.

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The article Why Stratasys Shares Soared originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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