Why 3D Systems (DDD) Stock Is Down Today Despite Reporting Positive Earnings

NEW YORK (TheStreet) -- 3D Systems (DDD) shares are down -4.9% to $46.90 following the release of the company's first quarter earnings report on Tuesday.

The 3-D printing company posted a year over year quarterly revenue increase of 45% to $147.8 million, beating analysts consensus estimates of $145.5 million in revenue.

The company also posted Non-GAAP net income of $15 million, or 15 cents per share, in line with analysts guidance.

However, though revenue from 3-D printer sales increased 53% to $60 million, organic growth for the quarter fell 28% from the previous quarter.

Additionally, the company reported a backlog of $17.9 million in printer orders that it could not fill due to manufacturing capacity.

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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 disappointing return on equity, premium valuation and weak operating cash flow."

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