NEW YORK (TheStreet) -- 3D Systems' ( DDD) first-quarter earnings largely met analysts expectations. But investors still didn't like the print. The stock closed Tuesday at $44.92, down 8.81%.
Shares of the three dimensional printing company fell more than 10% during 3D's first-quarter earnings conference call, shortly after the open. The price action sparked debate on StockTwits.com about whether momentum sectors, such as 3D printing and social media, were in the midst of a correction in which investors would keep selling, regardless of news, until multiples shrank significantly.
3D reported EPS of 15 cents per share, excluding some items such as stock-based compensation. That number met analysts' expectations, according to consensus estimates on the Analyst Ratings Network. First-quarter sales grew 45% from the prior year to $147.8 million, beating analysts' estimates by a couple million.
However, guidance disappointed. Management reiterated expectations for revenue at between $680 million and $720 million for the year. It expects earnings excluding some items should be between 73 cents and 85 cents. The midpoint of that number, 79 cents, is below the 81 cents analysts anticipated, according to stats on Yahoo! Finance.
On the conference call, analysts asked pointed questions about 3D's acquisitions, such as Brazil-based 3D products distributor Robotec and entertainment modeling company Gentle Giant Studios. Specifically, they wanted to know why guidance wasn't higher given the growth promised by these purchases.
Management said that the company had not fully integrated all of the acquisitions yet. They promised higher profits and margin growth in the second half of the year.
Some investors believed management erred on the side of caution. They anticipated profits and shares climbing in the second half of the year.