Why 3D Systems (DDD) Is Falling Today (Update 1)

NEW YORK (TheStreet) -- 3D Systems (DDD) was falling 24.9% to $56.89 Wednesday after the 3D printer producer announced fourth-quarter earnings estimates that were lower than previous guidance.

3D Systems gained slightly throughout the day, and closed at $64.10, a 15.4% drop from its closing price on Tuesday. Shares continued to fall by 0.7% to $63.68 in after-hours trading.

The company announced it now expects earnings of between 83 cents and 87 cents a share in the fourth quarter of fiscal 2013. 3D Systems' previous guidance called for earnings of 93 cents to $1.03 a share. The company said it saw strong professional 3D printer and materials demand, but that was offset by softer demand for on-demand parts and consumer devices in the quarter.

3D Systems also said it expects earnings for 2014 of between 73 cents and 85 cents a share and revenue of between $680 million and $720 million. Analysts surveyed by Thomson Reuters expects earnings of $1.27 a share and revenue of $671.3 for 2014.

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

"We rate 3D SYSTEMS CORP (DDD) a BUY. This is driven by multiple 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."

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