After the closing bell on Monday, Stratasys (SSYS) lowered its outlook for 2014 and offered a weak outlook for 2015. Here’s what the news means for mutual fund investors.
Inside the News
2014 outlook
The company updated its EPS guidance to a range of $1.97 to $2.03 (from its previous range of $2.21 to $2.31). Revenue is expected to be between $748 and $750 million. Previously, the company expected to see revenue between $750 million and $770 million.
Analysts expect to see EPS of $2.25 and revenue of $763.6 million.
2015 Outlook
For FY2015, the company expects EPS to be between $2.07 and $2.24. Revenue is expected to be in the range of $940 to $960 million. Analysts expect earnings of $2.91 per share and revenue of $1.01 billion.
Technology Revolution Hits Bump in the Road
While many investors see 3D printing as the next big thing, the technology is going through growing pains. Investors who believe 3D printing can eventually be a huge industry may want to wait for the dust to settle before considering the space. We consider SSYS as the early leader and the key name to keep on one’s radar.
Mutual Funds to Watch
Investors interested in SSYS may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in SSYS.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| PRGFX | T. Rowe Price Growth Stock | 2.71% |
| BUFSX | Buffalo Small Cap | 1.85% |
| PRSCX | T. Rowe Price Science & Tech | 1.50% |
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in SSYS may also be interested in 3D Systems (DDD).