3D Systems (DDD) Stock Jumps Despite Earnings Miss

3D Systems (DDD) shares are higher despite the 3D printing company's disappointing third quarter earnings report.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of 3D Systems (DDD) - Get Report were gaining 13.98% to $11.90 on Wednesday despite the 3D printing company's disappointing third quarter financial results.

Before the market opened, 3D Systems reported earnings of 1 cent a share for the third quarter, below analysts' estimates of 7 cents a share for the quarter. Revenue fell 9.2% year over year to $151.6 million for the quarter, below analysts' estimates of $181.09 million.

"We are disappointed with our overall results and the lower revenue from our 3D printing products and services, which we believe were negatively impacted by continued challenging market conditions that extended customers' capital investment cycles and reduced demand across all geographies," Interim President and CEO, and Chief Legal Officer Andrew Johnson said in a statement.

Johnson added that the company will "take decisive steps" to reduce its costs structure and better prioritize its resources around near-term opportunities while continuing its investments in "quality initiatives, partner-centric programs and new products."

About 4.9 million shares of 3D Systems were traded by 11:04 a.m. Wednesday, above the company's average trading volume of about 2.9 million shares a day.

TheStreet Ratings team rates 3D SYSTEMS CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate 3D SYSTEMS CORP (DDD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: DDD

DDD data by YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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