As I write this, the stock market is abuzz with excitement over Stratasys (NASDAQ: SSYS), a company that’s been making waves in the additive manufacturing space. And for good reason – their latest preliminary Q4 numbers are looking strong, and they’ve just secured a major investment from Fortissimo Capital.
Let me tell you, this stock has been on fire lately. As of my writing, it’s up 20.25% today alone, with a year-to-date gain of over 56%. That’s impressive, to say the least. But what’s behind all this excitement?
The Numbers
Stratasys reported preliminary Q4 numbers that beat expectations, with revenue expected to come in at $150.1 million – $150.5 million (vs. consensus of $149.35 million). Their adjusted gross margin is projected to be 49.4% – 49.7%, and their adjusted operating income is expected to be between $9.0 million – $9.5 million.
The company also secured a major investment from Fortissimo Capital, which will acquire 11.65 million newly issued shares at $10.30 per share (a 10.6% premium over the January 31st closing price). This deal values SSYS at around $788 million and gives Fortissimo a significant stake in the company.
The Risks
Now, I know what you’re thinking – this all sounds too good to be true. And yes, there are risks associated with investing in any stock. But let’s take a closer look:
- SSYS has been struggling with profitability in recent years, and their Q4 numbers may not reflect the full picture.
- The company is heavily reliant on a few key customers, which could impact revenue if those relationships were to change.
- Additive manufacturing is still a relatively new field, and there are many competitors vying for market share.
The Benefits
But here’s the thing – Stratasys has been making significant strides in recent years. They’ve expanded their product offerings, improved efficiency, and increased customer adoption. And with this investment from Fortissimo Capital, they’re poised to take it to the next level.
Stratasys’ technology is being used by some of the biggest names in industries like aerospace, automotive, and healthcare. Their products are helping companies save time, money, and resources – which can be a game-changer for businesses looking to stay competitive.
The Verdict
So what does it all mean? Well, I’m not here to tell you whether or not to buy this stock (although my readers know that’s always the case). But if you’re interested in additive manufacturing, SSYS is definitely worth keeping an eye on. Their preliminary Q4 numbers are looking strong, and with Fortissimo Capital now on board, they’ve got a significant boost of capital to take their business to new heights.
Just remember – investing always involves risk, so do your own research before making any decisions.
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