NEW YORK (TheStreet) -- Shares of 3D Systems (DDD - Get Report) are surging 17.16% to $14.29 in early morning trading today after the 3D services company posted better-than-expected 2016 second quarter earnings before today's opening bell.
3D Systems reported earnings of 12 cents per share, double analysts estimates of 6 cents per share. Revenue came in at $158.1 million, falling short of the $161 million analysts predicted.
Decreased demand for 3D printers pushed the company's revenue down 7% year-over-year, 3D Systems said. As a result, the company said it has been shifting to software and healthcare solutions, a move that generated a 50.9% increase in 3D Systems' profit margins.
A recent survey by Piper Jaffray showed that 3D printer demand has fallen across several manufacturers as consumers await the release of HP's (HPQ) Jet Fusion 3D printer.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate 3D SYSTEMS CORP as a Sell with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: DDDDDD data by YCharts