NEW YORK (TheStreet) -- 3D Systems Corp. (DDD) - Get Report stock is down 1.90% to $10.30 in early-morning trading on Monday after the company said it was discontinuing its entry-level 3D printer product.
The company will continue selling its existing inventory of the $999 consumer printers, known as the Cube, 3D Systems said in a statement on Monday.
3D Systems is also ending Cubify.com, which sells consumer products such as phone cases and jewelry, on January 31.
The company will increase its focus on professional and industrial applications, 3D Systems said.
"In connection with our ongoing review of our business and industry, we believe that the most meaningful opportunities today are in professional and industrial settings, from the product design shop to the operating room to the factory floor," Interim CEO Andy Johnson said in a statement on Monday. "We are focusing our efforts on enabling professionals and companies to improve their designs, transform their workflows, bring innovative products to market and drive new business models."
Based in Rock Hill, SC, 3D Systems develops 3D digital design and fabrication solutions.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate 3D SYSTEMS CORP as a Sell with a ratings score of D. This is driven by multiple weaknesses, 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.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 1145.7% when compared to the same quarter one year ago, falling from $3.08 million to -$32.25 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Computers & Peripherals industry and the overall market, 3D SYSTEMS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$4.26 million or 149.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 66.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1066.66% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 3D SYSTEMS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, 3D SYSTEMS CORP reported lower earnings of $0.11 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus $0.11).
- You can view the full analysis from the report here: DDD