Stratasys Cuts Profit Forecast After Grabcad Deal

Industries use 3D printing to make prototypes and specialized tools, moldings and parts, but there is growing demand for home 3D printers that can churn out simple products.

3D printer maker Stratasys Ltd cut its profit forecast for 2014.  Stratasys’s shares fell 12.5 percent on Wednesday morning, as investors ignored the company’s better-than-expected third-quarter revenue and profit.  As a reason for the downturn, Stratasys is citing its recent acquisition of computer-aided design systems developer GrabCAD and high development costs.  (Stratasys completed its purchase of GrabCAD on Sept. 23, though financial details of the deal were not disclosed.)

“I think what is putting the stock under pressure is the market’s concern about these levels of expense, (and) how long will they persist,” said John Baliotti, an analyst at Janney Montgomery Scott LLC.

http://www.reuters.com/article/stratasy-results-idUSL4N0SV61420141105

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