Heads up! 3D printing stocks are back trading in a nutty volatile fashion.
That’s because earnings season for the 3D printing companies is slowly approaching, which means earning updates/warnings are in the offing. Early Tuesday morning it was Stratasys (SSYS) that released updated fiscal year 2014 guidance, which came in above Street estimates on the revenue side, but below earnings expectations.
As a result, shares of SSYS dropped as much as 13% intraday, but reversed notably, closing the day lower by a little more than 8%. The reversal off the lows also lifted rival 3D printing stocks off their bottoms, with similar moves seen in shares of 3D Systems (DDD) and ExOne (XONE).
In what was a rather strange trading session, it felt as if traders only focused on the earnings side of the SSYS guidance, and entirely ignored the upward guidance in revenue (until later in the day).
After the close of trading, XONE issued a sales outlook for its 2013 fiscal year that shook 3D printing stocks even further. ExOne now sees 2013 revenues coming in a range of $40 million to $42 million — well below the $48 million the company previously estimated. This led to a big selloff in XONE stock this morning, as well as modest declines in DDD stock and Voxeljet (VJET).
Since my mid-December update on the state of 3D printing stocks, where I discussed the divergence within the group and the upside potential in 3D Systems, DDD stock has reached my upside target and then some. After the newfound volatility over the past two days, I still like DDD the best out of the group, although SSYS has arrived at good initial technical support.
Here are some thoughts on the updated charts: