(Adds details, background; updates share movement)
Jan 14 Industrial 3D printer maker Stratasys
Ltd's full-year profit forecast fell way below
analysts' estimates as the company expects a steep rise in costs
Shares of Stratasys, which makes prototyping systems to help
products market faster, fell nearly 5 percent to $124 in trading
before the bell.
The company, whose customers include Ford Motor Co,
Intel Corp and NASA, forecast a significant increase in
operating costs driven by investment in sales and marketing and
development of new products and technology.
Stratasys estimated capital costs of $50 million-$70 million
this year and said it plans to invest in manufacturing capacity,
anticipating future growth.
Jefferies & Co recently started coverage on stocks of 3D
printers, expecting near-term growth driven by prototyping and
long-term opportunity from mass-manufacturing.
Stratasys on Tuesday forecast 2014 adjusted earnings of
$2.15-$2.25 per share, missing analysts' average expectations of
$2.33 per share, according to Thomson Reuters I/B/E/S.
The company expects revenue of $660 million-$680 million,
exceeding analysts' estimates of $656.8 million.
Stratasys maintained that desktop 3D printer maker MakerBot,
which it acquired last June, would add to earnings this year.
(Reporting by Chandni Doulatramani in Bangalore; Editing by
Rodney Joyce and Joyjeet Das)