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Spotlight on 3d Stocks: ExOne (XONE) and Stratasys (SSYS)

Stocks in this article: SSYS

NEW YORK (TheStreet) -- In any fledgling industry, investors tend to grow skittish at the first sign of trouble, and Tuesday was no different for many three-dimensional printing stocks. Sparking the sell-off, Stratasys (SSYS) and ExOne (XONE) revised their full-year expectations which fell short of Wall Street consensus.

By market open, ExOne plummeted 9.5% to $56.34. Stratasys was beginning to recover from the previous day's falls, climbing 0.46% to $119.92.

After the bell Tuesday, ExOne warned full-year 2013 revenue would be between $40 million and $42 million, below previous guidance of $48 million. Based on the year's results, fourth-quarter revenue would fall in the range of $11.2 million to $13.2 million.

Analysts surveyed by Thomson Reuters had anticipated fourth-quarter revenue of $19.63 million and full-year sales of $48.32 million. The shortfall is related to machine sales yet to be completed for customers in Russia, India, Mexico and France. Those sales still needing approval processing will be deferred into 2014.

The Pennsylvania-based business is due to report fourth-quarter and full-year results on March 19.

Meanwhile, Stratasys, the second largest 3d printing stock on U.S. markets, said full-year net income for the period ending December would be between $2.15 and $2.25 a share and revenue in the range of $660 million to $680 million. Analysts had hoped net income would be at least $2.31 a share, though revenue consensus of $658.48 million was exceeded.

The Israel-based business' profitability will likely take a hit as operating expenses are projected to expand significantly over the year. The company expects to invest heavily in sales and marketing programs and research and development into new product development.

Following the announcements, several analysts weighed in on the sell-off, noting much of the losses were overdone.

Bank of America analyst Wamsi Mohan said Stratasys' guidance sets it up to exceed expectations. The bank reiterated its "buy" rating with a price target of $119.37.

"Potential revenue upside comes from faster organic growth (greater than 25% in the core business), and from higher MakerBot revenues, which are currently assumed in most models around $100 million. Stratasys management team has taken a conservative approach to guidance in 2013 and we expect the same is true in 2014," wrote Mohan in the report.

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