3D Systems Stock Struggles After Earnings Beat
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.
TheStreet Recommends
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%.
