What Happened?
Shares of 3D printing company Stratasys (NASDAQ: SSYS) jumped 14.1% in the afternoon session after the company reported strong first quarter 2025 results which significantly beat analysts' EPS and EBITDA estimates. Revenue declined 6% year over year to $136 million, reflecting softness in hardware and services, but recurring consumables revenue climbed 7% sequentially, signaling improved system utilization among existing customers. Zooming out, we think this was a good print with some key areas of upside.
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What The Market Is Telling Us
Stratasys’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Stratasys and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 21.3% on the news that the company reported impressive third-quarter 2024 results that blew past analysts' EPS and EBITDA outperformed Wall Street's estimates. Sales were roughly in line with expectations, enabling the company to meet revenue guidance for the full year. However, sales declined 13.6% year-on-year due to a drop in hardware sales, as customers reduced capital spending amid economic uncertainty. However, the guidance was more optimistic as management expects a slight sequential improvement in hardware sales, particularly in the dental and government sectors. Zooming out, we think this was a solid quarter.
Stratasys is up 26.8% since the beginning of the year, but at $11.03 per share, it is still trading 14.2% below its 52-week high of $12.85 from February 2025. Investors who bought $1,000 worth of Stratasys’s shares 5 years ago would now be looking at an investment worth $619.66.
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