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On Tuesday, Cantor Fitzgerald conveyed a cautious but ultimately optimistic outlook for the additive manufacturing sector based on the firm’s latest quarterly survey. The sector’s leading player Materialise NV (NASDAQ:MTLS), currently trading at $8.32 and near its 52-week high of $8.85, has shown resilience with a 35% gain over the past six months. The survey, which included feedback from equipment resellers, service bureaus, and machine shop operators, revealed that service bureaus experienced a challenging demand environment in the fourth quarter (4Q). According to Troy Jensen of Cantor Fitzgerald, 83% of respondents indicated that sales either met or fell below expectations during this period.
The subdued performance in the final quarter was attributed to several factors, including the U.S. presidential election, global economic weakness, and delayed orders. Despite this, the firm anticipates a strong growth trajectory for the industry in 2025. This positive outlook is driven by expected improvements in U.S. manufacturing, lower interest rates, and increased government investments. According to InvestingPro data, Materialise maintains a healthy financial position with a "Good" overall health score and strong fundamentals, suggesting it’s well-positioned to capitalize on the sector’s growth.
The manufacturing sector remained robust in 4Q, with particular interest growing in the automotive sector and steady demand from the military. Although geopolitical tensions have affected the aerospace sector, a recovery is forecasted for early 2025. Cantor Fitzgerald’s survey suggests that despite the challenges faced in 4Q, there is a prevailing sense of optimism for the coming year. For deeper insights into Materialise’s performance and potential, investors can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research reports.
Revenue growth forecasts for 2025 are positive, with expectations of high single-digit to mid-teen year-over-year revenue growth. This marks a significant improvement from the performance seen in 2024, where Materialise is projected to achieve 6% revenue growth. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, suggesting potential upside for investors. The firm’s findings underscore a confidence in the additive manufacturing industry’s potential to rebound and expand in the near future.
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