3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS): Did the Tide Just Turn for 3-D Printing Stocks?

Last week, I cautioned investors not to panic when shares of 3D Systems Corporation (NYSE:DDD)‘s  plunged by as much as 10% after the company missed estimates with its second-quarter earnings results.

After all, the additive manufacturing company did handily beat revenue estimates after growing sales 45% year over year to $120.8 million. In addition, though its earnings did fall by $0.01 per share over last year’s second quarter, that was largely thanks to dilution from 3D Systems Corporation (NYSE:DDD)’s recent latest stock issue, the funds from which they’ve already used to further fuel growth by acquiring two new businesses.

As a result, I also suggested that the pullback was a great time to buy shares of 3-D printing companies, in general, especially as they tend to move in tandem with one another. To be sure, fellow 3-D printing company stocks including Stratasys, Ltd. (NASDAQ:SSYS) and ExOne Co (NASDAQ:XONE) dropped by around 4% and 6%, respectively, after 3D Systems Corporation (NYSE:DDD)’s disappointing report.

Even so, considering Stratasys, Ltd. (NASDAQ:SSYS) itself also had to issue millions of new shares as part of its $400 million deal to merge with up-and-coming 3-D printer MakerBot, I certainly wasn’t alone in wondering whether Stratasys, Ltd. (NASDAQ:SSYS)’s earnings report Thursday morning would bring a similar pullback to extend the temporary losing streak in 3-D printing stocks.

Pullback? What pullback?
Unfortunately, for those looking for an even lower entry point, Stratasys, Ltd. (NASDAQ:SSYS)’s second quarter report yesterday sent its shares up more than 14% when all was said and done.

As it turns out, Stratasys, Ltd. (NASDAQ:SSYS) is finally beginning to realize the benefits of its enormous 2012 merger with fellow industry leader Objet. More specifically, Stratasys CEO David Reis says the company’s “growth in the second quarter accelerated compared to the first quarter, as the benefits of our recent channel integration and cross-selling initiatives have begun to materialize.”

Better yet, Reis also noted Stratasys, Ltd. (NASDAQ:SSYS)’s margins improved as a direct result of the operating synergies produced by the Objet merger.

All told, adjusted revenue for the second quarter grew 20% organically, to $106.7 million, while adjusted net income rose 32%, to $0.45 per diluted share. For reference, analysts were expecting earnings of $0.44 per share on $105.5 million in sales.