3D Systems (DDD) Stock Plummeting Today After Stratasys Warning
NEW YORK (TheStreet) -- Shares of 3D Systems Corp. (DDD) - Get Report are plummeting, down 9.59% to $27.35 in midday trading Tuesday, along with other 3D printer makers, following a profit and revenue warning by Stratasys (SSYS) - Get Report , one of the companies in the sector.
Stratasys warned that it expects to report 2014 earnings and revenue below its previous guidance, and issued a weaker forecast for 2015.
Stratasys now expects 2014 earnings of between $1.97 to $2.03 per share, below its previous estimate of $2.21 to $2.31 per share.
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For 2015, the company expects revenue of $748 million to $750 million, below its previous estimate of $750 million to $770 million. Wall Street analysts expect the 3D printer maker to report earnings of $2.25 per share on revenue of $763.6 million for the year.
Rock Hill, SC-based 3D Systems is a holding company that provides three-dimensional printing centric design-to-manufacturing solutions, including 3D printers, print materials and cloud sourced on-demand custom parts services for professionals and consumers.
Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 30.4%. Since the same quarter one year prior, revenues rose by 23.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DDD's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.11, which clearly demonstrates the ability to cover short-term cash needs.
- 47.84% is the gross profit margin for 3D SYSTEMS CORP which we consider to be strong. Regardless of DDD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DDD's net profit margin of 1.84% is significantly lower than the industry average.
- Net operating cash flow has significantly decreased to $8.57 million or 72.92% 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 63.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 82.35% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, DDD is still more expensive than most of the other companies in its industry.
- You can view the full analysis from the report here: DDD Ratings Report
