Despite the slowdown in 3D printing industry, Stratasys, Ltd. (NASDAQ: SSYS) remains upbeat about the future of 3D printing technology. A look at the company’s guidance for 2016 and listening to comment by an official of the company at a recent industry forum signal hope for a bright future.
What Stratasys is looking for in 2016
Stratasys, Ltd. (NASDAQ:SSYS) is looking for revenue in the band of $700 to $730 million in fiscal 2016, which will end on December 31. Adjusted EPS for the year is expected to come in the range of $0.17 to $0.43.
The management sees gross margins in the band of 54% to 55%, while operating margin is expected in the range of 3% to 5%.
Stratasys, Ltd. (NASDAQ: SSYS) intends to sink between $60 and $70 million into capital projects that include completion of a new facility in Israel. The Israel-based facility is expected to consume about $45 million.
Tax hit in 2016
Stratasys expects to bear a tax burden of $15 to $17 million. The tax estimate includes provision for tax valuation allowance.
Opportunity in F&B manufacturing
A Stratasys official called Sheldon Shi recently spoke at the Food & Beverage Innovation Forum held in Shanghai, China. Shi told the forum that 3D printed robot end-of-arm tools (EOAT) are the future of F&B manufacturing. He said that EOAT have several benefit over conventional metal components in that they save time, money and cause only minimal wear and tear.
Stratasys, Ltd. (NASDAQ: SSYS) would like to focus on that potentially lucrative market of EOAT.
How Stratasys, Ltd. (NASDAQ: SSYS) fared in 2Q
Stratasys, Ltd. (NASDAQ: SSYS) posted adjusted EPS of $0.12 in 2Q2016, outpacing the consensus estimate of EPS of $0.06. But revenue of $172.1 million skidded 6% YoY and also missed the consensus estimate by about $3.7 million.
Stratasys’ 2Q results, especially the topline figure, provided confirmation that 3D printing technology providers are still struggling with industry slowdown.