* 1st-qtr adjusted profit $0.40/shr, matching estimates
* Adjusted revenue $151.2 mln vs est $143.3 mln
* Company reiterates full-year profit and revenue outlook
* Shares fall as much as 9.6 pct
(Adds analyst comment, details; updates shares)
By Soham Chatterjee
May 9 3D printer maker Stratasys Ltd
reported an adjusted quarterly profit that matched the average
market estimate and stuck to its full-year forecast on Friday,
disappointing investors who had expected better on both counts.
Stratasys shares fell as much as 9.6 percent in early
trading as investors also overlooked a better-than-expected rise
in adjusted revenue, helped in part by the acquisition of
consumer 3D printer maker MakerBot last year.
The company, which has traditionally focused on large
industrial printers that sell for $15,000-$750,000, bought
MakerBot in a $494 million deal that closed in August.
Adjusted margins rose to 60.9 percent from 59 percent a year
earlier. However, Stratasys said the operating margin expansion
in its core business would likely be offset this year by the
full-year impact from MakerBot, which is investing heavily on
development and product launches.
Stratasys said it expected operating expenses to increase
"materially" this year due to investment in sales and marketing.
Capital expenditure was forecast at $50-$70 million.
Operating expenses rose 42 percent in the quarter.
Earnings were also influenced by a fall in income tax to
$820,000 from $3.1 million, which BB&T Capital Markets analyst
Holden Lewis said was worth about 5 cents per share.
"I would expect that as you would go into Q2 and Q3 as the
revenue growth remains strong and the leverage improves, I think
that the reaction to the stock would be far improved from what
we are seeing today," Lewis told Reuters, calling Friday's drop
Janney Capital Markets analyst John Baliotti said selling
was likely due to expectations among some investors that
earnings per share would be higher and that the company would
raise its forecast.
Stratasys reiterated its 2014 forecast of adjusted earnings
of $2.15-$2.25 per share on revenue of $660-$680 million.
Analysts on average were expecting $2.21 per share on revenue of
$674.8 million, according to Thomson Reuters I/B/E/S.
Stratasys said it expected organic sales, excluding MakerBot
sales, to grow at least 25 percent from 2013.
Net income attributable to Stratasys was $4.1 million, or 8
cents per share in the quarter, compared with a loss of $15.5
million, or 40 cents per share, a year earlier.
Excluding items, the company earned 40 cents per share, in
line with the average analyst estimate, according to Thomson
Reuters I/B/E/S. Adjusted revenue of $151.2 million beat the
average estimate of $143.3 million.
Stratasys's share count rose 33 percent from a year earlier,
in part due to the issue of shares for the MakerBot acquisition.
Stratasys shares were trading at $88.73, down from
Thursday's close of $94.32.
Up to Thursday's close, the stock had lost about 30 percent
of its value this year in a general sell-off of 3D stocks amid
growing concern that the sector was over-valued.
Shares of Stratasys rival 3D Systems Corp, which has
lost about half their value this year, were down 1.8 percent.
(Reporting by Soham Chatterjee and Sruthi Ramakrishnan in
Bangalore; Editing by Don Sebastian and Ted Kerr)