Headquartered in Rock Hill, SC, 3D Systems Corp. (DDD) is a leading provider of 3D content-to-print solutions including 3D printers, print materials, on-demand custom parts services and 3D authoring solutions for professionals and consumers, worldwide. The company also provides scanners for a variety of medical and mechanical X-Ray film digital archiving.
3D Systems has been making consistent efforts to strengthen its operational efficiency and expand its business via acquisitions, with its most recent one being Cimatron ltd. – one of the leading CAD/CAM software solutions providers – for $97 million. However, financing these acquisitions and continued investments in research and development have taken a toll on the company’s financial health. Moreover, severe competition in the industry, persisting economic uncertainty, and foreign currency risks continue to be headwinds for 3D Systems.
Recent estimate revision activity for DDD has been limited, as the consensus estimate for the stock has been flat. However, the company has a poor track record: it has missed estimates in each of the last four quarters at an average rate of 18.9%.
Currently, DDD has a Zacks Rank #4 (Sell) but that could definitely change following its earnings report, which has just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: DDD beat on earnings. Adjusted Earnings per share came in at 21 cents, surpassing the Zacks Consensus Estimate of 20 cents.
Revenue: Revenues of $187 million came below the Zacks Consensus Estimate of $210 million, but grew 21% year over year.
Key Stats: The EMEA region, comprising of Europe, Middle East, & Africa, witnessed outstanding organic growth of 28% year over year. Direct metals and healthcare segments also showed robust performance, with year over year growth of 178% and 96% respectively.
Stock Price: Shares were down 2.6% ahead of the report and they are down about 1.4% in after-hours trading following the release. This suggests it could be a pretty rough day for DDD in tomorrow’s session, and that this sell-ranked stock might not be out of the woods just yet.
Check back later for our full write up on this DDD earnings report later!
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