Stratasys, Ltd. SSYS reported its third quarter results on Wednesday morning which featured a better-than-expected earnings per share and revenue beat.
Shares of Stratasys have plunged 12 percent, likely due to the company's lowered earnings per share guidance for the full fiscal year and elevated spending projections.
Related Link: Stratasys Tops Analysts Q3 Expectations, Issues Weak Guidance
Stratasys expects its capital expenditure will rise to $160 million to $200 million in 2015, a noticeable increase from 2014 levels of $50 million to $60 million.
Troy Jensen of Piper Jaffray defended shares of Stratasys following its quarterly results. The analyst states that investors "need to remain patient" as the company's spending will likely continue to accelerate for several more quarters.
The analyst adds that the company's spending is above its market growth, as demonstrated by its 35 percent organic growth in the third quarter.
Jensen notes that the decline in share prices on Wednesday is attributed to investor sentiment that the company's spending "more than offsets" an otherwise impressive revenue growth in the quarter.
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