Why Stratasys Shares Jumped

Updated
Why Stratasys Shares Jumped

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 3-D printing company Stratasys jumped 14% today after announcing earnings.

So what: Revenue rose 116% to $106.5 million, which was above the $105.5 million estimate from Wall Street. Adjusted earnings per share were up 41% to $0.45, also topping estimates but only by a penny.


Now what: The big catalyst was likely full-year revenue guidance, which at $445 million-$480 million was well above the $441 million analysts expected. This is by no means a cheap stock at eight times revenue but it's quickly growing and it's in an industry that has enormous growth potential. Stratasys is simply too expensive for my blood, but with growth like that there's a lot of upside for investors if growth continues.

Interested in more info on Stratasys? Add it to your watchlist by clicking here.

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

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Stratasys. The Motley Fool owns shares of Stratasys. 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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