Stratasys shares soar 14 percent as company raises growth target

The 3-D printer has entered that phase in a product's life cycle when demand goes mainstream, growth soars and lots of money is made. And for Stratasys Ltd., the Eden Prairie company that is one of the world's leading makers of 3-D printers, Thursday was the day when investors realized it.

During their announcement of second-quarter results, Stratasys executives raised full-year revenue projections far beyond what analysts had been projecting, announced a major new order and pronounced a complicated merger to be complete.

The result: Stratasys shares roared upward 14 percent, closing at a record $98.26, beating its previous high of $95.16 on July 15. Its shares are up 22.6 percent for the year.

It's a heady time for a company that for years toiled as a relatively obscure, though solid, maker of industrial tools and forms, with shares that traded below $30 until late 2010. Today, Stratasys sits in the middle of one of the fastest-growing markets in high tech, making a product that is transforming businesses and finding its way into the homes of hobbyists, inventors and entrepreneurs.

"We believe this journey is similar to the evolution in personal computers," David Reis, Stratasys' chief executive, said in a conference call with investment analysts Thursday. "What began as a kit-based product became a mainstream tool in business and industry as affordability, access and ease of use improved."

In another sign that 3-D printing is on the verge of broad acceptance, Microsoft Corp. recently said it will include a driver, or software instruction, for 3-D printers in the next version of its Windows operating system coming later this year.

3-D printers work by depositing adhesive, plasticlike materials layer by layer into any shape. They were initially popular as a replacement for prototypes of industrial molds and forms.

Stratasys' growth has been shaped by more than just the organic market trends. The company last year acquired Israel-based Objet, another strong player at the high end of the 3-D printing business. And in June Stratasys bought MakerBot, a builder of ­desktop versions of 3-D printers.

Last month, United Parcel Service said its franchised UPS Stores will use Stratasys products in its stores to provide a 3-D printing service to serve start-up companies, small businesses and individual customers.

On Thursday, executives revealed another major order from a firm they declined to identify beyond calling it a "major global manufacturing company." Pressed by analysts, Reis said it is an "industrial customer which is going to use these printers around the world."

Reis also told investors that the integration of Objet and Stratasys is complete, with systems aligned and sales representatives across the globe selling products from both firms.

And with the expected closing of the MakerBot deal later this month, Stratasys raised its revenue guidance for the year to $455 million to $480 million, up from the previous $430 million to $445 million.

However, its adjusted earnings of 45 cents a share beat the 44 cents that Wall Street analysts expected. And revenue of $106.49 million also was slightly better than analysts had predicted.

alex@startribune.com • 612-673-4553