3D Systems (DDD) Partners With Hershey (HSY) For 3D-printed Treats

NEW YORK (TheStreet) -- 3D Systems (DDD) and The Hershey Company (HSY) announced a partnership Thursday that will use 3D printing to create new foods.

3D Systems rose 3.5% to $92.89, and Hershey rose 0.7% to $98.88 on the news.

The multi-year agreement will see the 3D printing company and the chocolate producer create new ways of bringing 3D-printed food to market. "Whether it's creating a whole new form of candy or developing a new way to produce it," Hershey vice president and chief research and development officer William Papa said, "we embrace new technologies such as 3D printing as a way to keep moving our timeless confectionery treats into the future."

3D Systems introduced its new ChefJet and ChefJet Pro 3D food printers at CES last week. The printers are capable of producing 3D objects made of sugar that aren't possible otherwise.

Hershey is the first major food company to embrace 3D-printed food.

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

"We rate 3D SYSTEMS CORP (DDD) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 49.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although DDD's debt-to-equity ratio of 0.02 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.40, which clearly demonstrates the ability to cover short-term cash needs.
  • 3D SYSTEMS CORP has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, 3D SYSTEMS CORP increased its bottom line by earning $0.47 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.47).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Computers & Peripherals industry average. The net income increased by 30.6% when compared to the same quarter one year prior, rising from $13.52 million to $17.66 million.
  • Net operating cash flow has increased to $31.64 million or 39.80% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.76%.
  • You can view the full analysis from the report here: DDD Ratings Report


TheStreet Ratings team rates HERSHEY CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERSHEY CO (HSY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • HSY's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HERSHEY CO has improved earnings per share by 33.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HERSHEY CO increased its bottom line by earning $2.89 versus $2.74 in the prior year. This year, the market expects an improvement in earnings ($3.72 versus $2.89).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income increased by 31.8% when compared to the same quarter one year prior, rising from $176.72 million to $232.99 million.
  • 49.02% is the gross profit margin for HERSHEY CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.56% is above that of the industry average.
  • Powered by its strong earnings growth of 33.76% and other important driving factors, this stock has surged by 31.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: HSY Ratings Report

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