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3D Systems Stock Struggles After Earnings Beat

3D Systems reported a 28% jump in healthcare revenue as demand for dental applications rose.

Shares of 3D Systems  (DDD) - Get 3D Systems Corporation Report slumped on Tuesday even after the provider of 3D printers and scanners swung to a third-quarter profit on higher sales.

The results exceeded Wall Street expectations.

A year after the world began emerging from the depths of the pandemic, “global economies are much stronger," President and Chief Executive Jeffrey Graves said in a statement.

“We still see continued challenges with Covid-19, and new challenges around supply chains,” but 3D’s quarter showed double-digit growth compared with the 2020 and prepandemic 2019 periods, adjusted for divestitures, he said.

3D shares on Tuesday closed 14% lower at $29.01.

For the quarter ended Sept. 30, 3D Systems swung to a profit of $2.34 a share from a loss of 61 cents a share in the year-earlier period.

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Non-GAAP earnings registered a profit of 8 cents a share compared with a loss of 3 cents in the year earlier quarter.

Revenue rose 15% to $156 million from $136.2 million.

Analysts surveyed by FactSet had estimated earnings of 5 cents a share on revenue of $144.6 million.

3D Systems saw revenue from health care rise 28% to $76.4 million, thanks to high demand for dental applications, both printers and materials, the company said.

"Our focus during this phase is investing in significant opportunities that we believe will drive high-margin recurring revenue," added Graves.

The company is active in deals: It closed the purchase of Oqton software; it expects in Q4 to close the acquisition of Volumetric Biotechnologies; and it expanded its development agreement with United Therapeutics  (UTHR) - Get United Therapeutics Corporation Report.

On a non-GAAP basis the company expects 2021 gross profit margins to be 41% to 43%.