As regards to the future of the emerging 3D printing industry, investors are polarized. Those bullish on industry leaders Stratasys Ltd. (SSYS) and 3D Systems Corp. (DDD) find the 3D printing market a favorable long-term investment as engineers, designers, architects and entrepreneurs increasingly bank on 3D solutions for their design and product modelling. As per the Wohlers Report 2014, the global 3D printing industry will rise from $3.07 billion in total revenue in 2013 to $12.8 billion by 2018, exceeding $21 billion in worldwide revenue by 2020.
Nowadays, the two biggest and most diversified 3D printing industry leaders trade openly at a price less than five years ago and the investors who consider the industry to be getting matured after a slowdown slowdown and debilitating lengthened sales cycle seek to buy. In addition to this, the industry is being shaken by tech vet HP Inc. (HPQ) due to its expansion from 2D printing to 3D printing technology, thereby making it capable of competing with an increasing number of industry players.
1. Stratasys Ltd.
Owing to the merger between additive manufacturing companies Stratasys Inc. and Objet Ltd. the Delaware-based technology company was made in 2012. A 19% decline in 3D printer revenue year-over-year (YOY) was reported by Stratasys in the second quarter, during which print materials and customer support revenue were both up 11%. Adjusted earnings per share (EPS) came in at $0.12, down from $0.15.
In order to bring in advanced 3D printing technologies to the aerospace and automotive industries, a strategic partnership with Boeing Co (BA), Ford Motor Co. (F) and Siemens has been made by Stratasys in recent times. The two new products, the Infinite-Build 3D Demonstrator and the Robotic Composite 3D Demonstrator, have been revealed by Stratasys due to the new alliances in order to assist users decrease complexities and data loss.
2. 3D Systems Corporation
As compared to three, not only seven models are featured by the South Carolina-based competitor of Stratasys, but also have the added ability to print on materials other than polymers, such as metals and ceramics. Although a 7% YOY decline in revenue was reported, the company saw its share price spike 18%. This stock flood is because of the fact that in the second quarter of 2016, EPS broke through the roof of expectations. 3D Systems’ reported Q2 2016 earnings of $0.12 per share reflected four times last year’s Q2 EPS and doubled that of Wall Street’s projections.
3. HP Inc.
A possible threat might be offered to the smaller industries like 3D Systems and Stratasys due to the arrival of tech industry giant HP in the 3D printing space. In May, it was proclaimed by HP Inc. that it is going to enter the market with two separate models that are aimed at the industrial market, targeting companies that can meet the expense of premium high-capacity equipment. HP’s fiscal 2016 total revenue of $11.9 billion represented a 4% decline YOY, yet exceeded expectations of just $11.47 billion. HP stock is trading near the 52-week high of $14.82 and target price of $15, at $14.40 on Sept. 1.