The financial buckings of 3-D printer Stratasys Ltd. reared again this week with news that the company will post yet another loss, this time $150 million to $190 million for its third quarter.
Investors were not pleased. Stratasys shares plunged 10 percent to close at $27.67 a share Friday.
The bulk of the loss was attributed to the company’s problematic MakerBot consumer unit. The company will take $140 million to $180 million in goodwill and impairment charges for the MakerBot division, which ran into trouble last year after consumers from Home Depot and other new retail partners complained of defective extrusion jets on MakerBot machines.
In a preliminary earnings report issued late Thursday, Stratasys said it is “performing a goodwill impairment analysis for its other reporting units, which may result in additional impairment charges.”
For now, Stratasys expects third quarter revenue could be $166 million to $168 million. Excluding the MakerBot loss, profits are expected to range from a possible loss of $1.5 million to a possible profit of $1 million.
Officials will post actual results Nov. 4.
Loss warnings have become second nature for the Eden Prairie and Israeli-based maker of industrial and consumer 3-D printing manufacturing machines used by factories, educators, artists and many small businesses that need to make or change prototypes and parts quickly.
The company, which was once a Wall Street darling with big expectations for the burgeoning 3-D technology, has faced heightened competition in recent years as other firms have raced into the field. That, plus a run of defective machines for its smaller consumer division, has hurt results, analysts said.
Stifel analyst Patrick Newton said Stratasys and the entire industry showed “impressive” growth in 2013. But changes in the industry and the lack of significant spending in R&D, new software and faster machines has hurt companies.
Stratasys’ latest woes and Thursday’s announcement signal more trouble for the industry, he said.
“With the aggressive reduction in expectations, our analysis indicates Stratasys’ organic growth rate likely further decelerated sequentially — likely approaching negative 20 percent,” Newton said. “With soft trends persisting into [the second quarter] we anticipate Stratasys will aggressively adjust the company’s structure to reduce operating expenses during the current soft demand environment.”
Newton still believes there are “significant” growth opportunities for Stratasys, but that in all likelihood, “competitive dynamics will continue to represent headline and potential real risks through 2015 — especially in consumer markets and potentially select industrial markets.”