Stratasys Shares Surge on Strong Fourth-Quarter Outlook

Stratasys (SSYS) shares have been on a tear, climbing over 10% in the past week, as investors anticipate a strong fourth-quarter performance. The 3D printing giant is expected to report earnings on February 23, and analysts are bullish on the company's prospects. Here's what you need to know about Stratasys' recent performance and outlook.

Strong Fourth-Quarter Forecast

Stratasys has guided for fourth-quarter revenue of $150.1 million to $150.5 million, representing a 13.3% to 13.5% increase year-over-year. The company also expects non-GAAP operating income of $9.0 million to $9.5 million, up from $8.3 million in the fourth quarter of 2021. These projections suggest that Stratasys is on track to deliver another strong quarter, building on the momentum it has gained throughout the year.



Drivers of Growth

Stratasys' growth can be attributed to several factors, including:

1. Increased demand for 3D printing solutions: As industries such as aerospace, automotive, and healthcare adopt 3D printing technologies, demand for Stratasys' products has grown. This trend is expected to continue in the long term.
2. Expansion of product portfolio: Stratasys has expanded its offerings, including the launch of new 3D printing systems and materials. This expansion allows the company to cater to a broader range of customer needs and applications.
3. Growth in manufacturing sales: In 2021, manufacturing sales accounted for 29% of Stratasys' revenues, up from 25% in 2020. The company expects manufacturing sales to grow by at least 20% in 2022.
4. Acquisitions and strategic partnerships: Stratasys' acquisitions, such as RPS and Xaar 3D, have expanded its product portfolio and opened up new avenues for growth. Additionally, the company has formed strategic partnerships with leading materials companies, software partners, and customers, creating new opportunities for collaboration and innovation.

Looking Ahead

Stratasys' strong fourth-quarter outlook and growth drivers suggest that the company is well-positioned to continue its momentum in 2022. As the 3D printing industry continues to grow, Stratasys' focus on innovation, strategic partnerships, and market expansion will likely contribute to its long-term success.



In conclusion, Stratasys' shares have surged on a strong fourth-quarter outlook, driven by increased demand for 3D printing solutions, expansion of its product portfolio, growth in manufacturing sales, and strategic acquisitions. As the 3D printing industry continues to grow, Stratasys is well-positioned to capitalize on its growth prospects and maintain its competitive edge. Investors should keep a close eye on Stratasys' earnings report on February 23, as it may provide further insights into the company's performance and outlook.