Leading provider of polymer 3D printing solutions Stratasys Stock (NASDAQ:SSYS) fell (-21%) during the 2022 tech bear market. The 3D printing leader survived the first 3D printing speculative bubble nearly a decade ago, which saw stocks trading at the north of 100 dollars. Like most technologies that survive the Gartner Hype Cycle, a few companies are rising from the ashes as real consumer applications for the technology develop. 3D printing has become more mainstream not only for consumers, but also in manufacturing, aerospace, biotechnology, medical equipment, fashion, and automotive industries. The technology enables the design, prototyping, tooling and production of final parts. Stratasys has launched its fashion solution marketed with Techstyle to print directly onto garments, potentially enabling customization and deep personalization of bags, accessories and textiles. The company enables companies to 3D print spare parts on the fly to reduce reliance on outside suppliers and over-reliance on the global supply chain. Deadlines have been reduced by 95% for its transport client Alstom. Cautious investors looking to enter the 3D printing segment after the hype can watch for opportunistic pullback levels from Stratasys.
Publication of results for the first quarter of fiscal year 2022
On May 16, 2022, Stratasys released its first quarter fiscal 2022 earnings report for the period ended March 2022. The company reported non-GAAP earnings of $0.02 per share over estimates. analyst consensus for a loss of (-0.04 USD) per share. , a beat of $0.06 per share. GAAP operating losses were (-$19.6 million). Revenue rose 21.8% year-over-year (YoY) to $163.43 million, beating consensus estimates of $157.45 million. The company ended the quarter with $475.6 million in cash and no debt as of March 31, 2022. Stratasys CEO Yoav Zeif said, “We have advanced a number of strategic initiatives so far in 2022, including MakerBot’s announced combination with Ultimaker, the release of our first ESG Sustainability Report, and our annual manufacturing flagship event where we showcased new material offerings, existing printing and an extension of our software capabilities. leadership position in polymer 3D printing With our combination of best-in-class talent, systems offerings, go-to-market, and support infrastructure, combined with a strong balance sheet, Stratasys is able to leverage of our first quarter growth through the balance sheet of 2022 and beyond.”
Stratasys expects second quarter 2022 revenue growth to be low to mid percentage compared to second quarter 2021. The company expects full year 2022 EPS to be between $0.14 and $0.19 versus $0.16. Full-year 2022 revenue is expected to be between $685 million and $695 million, compared to consensus analyst estimates of $684 million.
Takeaways from the conference call
CEO Zeif highlighted the first quarter of 2022 as the strong first quarter performance in six years with strong results across all platforms. All areas of the business have shown improvement from the pre-COVID 2019 period. He is excited about the new Origin p#, H350 SAF and NEO systems which are rapidly gaining momentum. These systems are designed for higher volume production of end-use parts and help grow the company’s leadership position in 3D polymers. The company created a new entity consisting of MakerBot and Ultimaker to accommodate entry-level 3D printer users while focusing on larger-scale polymer 3D printing for healthcare, industrial and production. Stratasys also focuses on renewable energy projects to support environmentally friendly manufacturing solutions. He helped his client, medical device manufacturer Medtronic, save up to 80% of costs by switching from 3D printing tools to machine tools.
SSYS Opportunistic Price Levels
Using rifle charts on the weekly and daily time frames provides an accurate view of the landscape for the SSYS stock. The weekly Rifles chart peaked near $27.62 Fibonacci level (fib) before crashing down to the $15.60 fib to bottom out. The weekly downtrend came to a halt with the 5-period moving average (MA) holding steady at $19.21 while the 15-period MA continues to decline at $21.57. The weekly 50-period MA stands at $23.63 above the weekly 200-period MA at $22.09. The weekly stochastic bounced through the 20-band test as it tried to trigger the weekly weak market structure (MSL) buy triggers on a break through the $19.70 level. The daily chart for the Rifle is trending higher with the 5-period MA rising at $19.94, followed by the 15-period MA at $18.91. The daily 50-period MA drops to $20.81 and the 200-period MA is $24.14 above the daily upper Bollinger Bands (BB) at $21.50. Cautious investors can look for opportunistic pullback levels at the $17.90, $16.75, $15.60, $13.97, $13.00 and $11.89 level. The upward trajectories are from the $24.23 fib level all the way up to the $