As schools increasingly incorporate 3D printing into their curricula, it will contribute to the already impressive success of the main players in the space. 3D Systems Corporation (NYSE:DDD) saw revenue growth of 53.5% in 2012 and revenue growth of 31% in Q1 2013. This is, in part, due to new products revenue increasing to $38.3 million in Q1 2013– a 60% increase from Q1 2012. Also, gross profit margins increased to 51.2% for full year 2012 while Q1 2013 saw gross profit margins increase to 52.4%. Stratasys, Ltd. (NASDAQ:SSYS) has also experienced impressive success. From fiscal year 2011 to 2012 they saw revenue grow 30% from $277 million to $359.1 million; furthermore, non-GAAP gross margins increased from 56.7% in Q1 2012 to 59% in Q1 2013.
A lesson in energy solutions
Another way in which school districts are looking to reduce spending is by addressing their energy consumption. Companies like Ameresco Inc (NYSE:AMRC) can help school districts make the transition to more efficient energy solutions. For example, there are 20 case studies of school districts that have enlisted Ameresco Inc (NYSE:AMRC)’s services on their website. From reading through earnings reports and other materials, I find it difficult to gauge just how substantial the revenue from school districts is, but the company often identifies school districts as a major customer base. Likewise, I would assume that school districts comprise a substantial component of the total construction backlog– a backlog, as of March 31, 2013, of more than $1.5 billion, representing an 18% increase year-over-year; moreover, their pipeline (proposals, awarded projects, and newly signed contracts) increased 17% year-over-year to $2.8 billion at the end of Q1 2013.
What Did We Learn?
There are many different ways to play the education sector. Looking at issues regarding demographics and curriculum, though, provide interesting insights into determining which companies might prosper. Rosetta Stone Inc (NYSE:RST), 3D Systems, Stratasys, Ltd. (NASDAQ:SSYS), and Ameresco Inc (NYSE:AMRC) offer compelling reasons to invest; albeit the plays are high-risk, they are also high-reward.
The article 3 Alternative Perspectives for Investing in the Education Sector originally appeared on Fool.com and is written by Scott Levine.
Scott Levine owns shares of 3D Systems. The Motley Fool recommends 3D Systems, Rosetta Stone, and Stratasys. The Motley Fool owns shares of 3D Systems, Rosetta Stone, and Stratasys and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Scott is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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