Stratasys ( recently announced that the merger of its wholly owned subsidiary, MakerBot, with NPM Capital-backed Ultimaker is complete. The newly formed company is running under the Ultimaker name, effective from Aug 31, 2022. SSYS Quick Quote SSYS - Free Report)
Following the completion of the merger, Stratasys holds a minority stake of 46.5% in the newly combined company, while NPM Capital owns the remaining 53.5% stake. Given its minority ownership in the combined company, SSYS stated that financial contributions from MakerBot would not be included in its consolidated financial statements from Sep 1, 2022 onward.
Stratasys’ MakerBot entered into an agreement in May 2022 with Netherlands-based Ultimaker to join the businesses and form a new entity, headquartered in both the Netherlands and New York, for the global advancement of additive manufacturing technology.
The newly formed entity will offer combined desktop 3D-printing solutions to a broad base of customers by joining their teams and leveraging additional funding. This will jointly enhance both MakerBot and Ultimaker’s hardware, software and material portfolios while expanding their international presence across the Americas, the EMEA and the APAC.
The merger depicts support for sustainable manufacturing. The newly formed entity is expected to gain from an investment worth $62.4 million in cash to fuel innovation and expansion into new markets.
Stratasys is benefiting from an increase in demand for 3D printed materials. Moreover, its cost-control initiatives are expected to reflect positively on expenses in the forthcoming quarters. A firm focus on launching products and entering into partnerships is a key driver. In the last reported quarter, Stratasys registered growth across key metrics, including revenues, earnings and cash flows.
In the second quarter of 2022, Stratasys’ revenues jumped 13.3% year over year to $166.7 million and surpassed the Zacks Consensus Estimate of $166 million. The company reported non-GAAP earnings of two cents per share for the quarter, which compared favorably with the year-ago quarter’s loss of two cents as well as the Zacks Consensus Estimate of a loss of three cents.
Zacks Rank & Stocks to Consider
Currently, Stratasys carries a Zacks Rank #3 (Hold). Shares of SSYS have decreased 33.7% year to date (“YTD”).
Some better-ranked stocks from the broader Computer and Technology sector are
Clearfield ( CLFD Quick Quote CLFD - Free Report) , Silicon Laboratories ( SLAB Quick Quote SLAB - Free Report) and Monolithic Power ( MPWR Quick Quote MPWR - Free Report) . Clearfield and Silicon Laboratories each sport a Zacks Rank #1 (Strong Buy), while Monolithic Power carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
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