Yahoo Finance Stratasys (SSYS), AM Craft to Venture Into the Aviation Industry
Stratasys SSYS has announced a strategic partnership with AM Craft to expand the demand for flight-certified 3D printed parts in the aviation industry. This collaboration involves a definitive commercial agreement and a strategic investment by Stratasys in AM Craft.
The appeal of additive manufacturing as a supply chain solution is particularly strong due to the long sustainment life of aircraft and the challenges associated with forecasting and stocking replacement parts.
Through this partnership, Stratasys will leverage AM Craft's production capabilities in Europe and its ability to extend certification to partner companies like Paradigm 3D in Dubai, UAE. SSYS' subsidiary, Additive Flight Solutions, in Singapore, will be operated by AM Craft, expanding the production network to Southeast Asia and adding a new facility in Hamburg later this year.
Stratasys also recently partnered with BASF Forward AM for the commercial availability of SAF Polypropylene for the H350 printer. The product offers cost efficiency and superior part quality for high-volume production in Powder Bed Fusion technologies.
Stratasys, Ltd. Price and Consensus
Stratasys, Ltd. price-consensus-chart | Stratasys, Ltd. Quote
SSYS’ Expanding Product Portfolio to Aid Top-Line Growth
Stratasys recently partnered with some prominent companies, contributing to its expanding product portfolio. This is expected to aid the top-line growth in the upcoming quarters.
For 2024, management projects revenues between $630 million and $645 million. The Zacks Consensus Estimate for Stratasys’ 2024 revenues is pegged at $631.49 million, indicating year-over-year growth of 0.62%.
SSYS recently announced the launch of the J5 Digital Anatomy 3D printer to meet the increasing need for cost-effective and high-fidelity anatomical models. This advanced 3D printer is designed to assist hospitals, medical device manufacturers and research institutions in enhancing patient outcomes, streamlining operations and accelerating product development.
Additionally, Stratasys also launched several updates to its product line, including a new open platform for the F900 3D printer, expanded on-demand 3D printing capabilities and the latest high-performance material for its Fused Deposition Modeling line. These updates are based on customer feedback and aimed at unlocking more opportunities and functionalities for additive manufacturing. SSYS has also introduced new SAF HighDef Printing capabilities with the launch of the H350 printer, Version 1.5.
However, Stratasys faces tough competition in the printer market segment from big players like Hewlett Packard Enterprise HPE, Seiko Epson SEKEY and Konica Minolta KNCAY.
Shares of this Zacks Rank #3 (Hold) company have plunged 42.4% year to date against the Zacks Computer and Technology sector’s growth of 24%. The stock has also underperformed HPE, which has gained 20.6%, followed by SEKEY’s growth of 3.1% and KNCAY’s decline of 5.3% in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conclusion
Stratasys’s strong partner base and expanding product portfolio make it an attractive pick for investors. However, strong competition remains a major concern for the company.
Its near-term growth prospects are likely to be hurt by soft IT spending as organizations are pushing back their investments in big and expensive technology products amid the ongoing macroeconomic headwinds and geopolitical issues.
The Zacks Consensus Estimate for SSYS’ second-quarter loss per share is pegged at 2 cents, which has declined by 4 cents in the past 30 days. The consensus mark for 2024 earnings is pegged at 15 cents per share, which has remained unchanged in the past 30 days.
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