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3D Systems (DDD) Up More Than 14% as Q1 Earnings Beat Estimates

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Shares of 3D Systems (DDD - Free Report) gained 14.5% during Monday’s extended trading session after the 3D printing company reported outstanding first-quarter 2021 results, wherein the top and bottom lines surpassed the respective Zacks Consensus Estimate and marked solid year-over-year improvements as well.

3D Systems reported first-quarter 2021 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate of 3 cents. Moreover, the bottom line compares favorably with the year-ago quarter’s loss of 4 cents per share, mainly driven by higher revenues and cost savings achieved from restructuring initiatives.

Revenues grew 7.7% year over year to $146.1 million despite divestments of some business units in 2020 and 2021. Excluding the impact of divested businesses, the top line increased 16.6% year on year. Moreover, quarterly revenues beat the consensus mark of $134.7 million.

Solid performance of the Healthcare segment and continued stabilization at Industrial division primarily fueled the year-over-year increase in revenues.

Revenues from the products division (64% of revenues) rose 17.4% year over year to $93.6 million. Services revenues (36% of revenues) fell 6.1% from the year-ago quarter to $52.5 million.

3D Systems Corporation Price, Consensus and EPS Surprise 3D Systems Corporation Price, Consensus and EPS Surprise

3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote

Quarterly Details

The Healthcare segment revenues jumped 38.7% year over year to $72.5 million. Robust dental and medical application end markets aided this growth.

Industrial division revenues slid 11.7% year over year to $73.6 million. However, excluding the impact of divested businesses in 2020 and 2021, Industrial’s sales inched up 0.7%, reflecting continued stabilization at the division.

In the reported quarter, non-GAAP gross margin expended 130 basis points (bps) year over year to 44%.

During the first quarter, 3D Systems’ non-GAAP operating expenses dropped 18.7% year over year to $51.2 million. This year-over-year decline chiefly resulted from the savings achieved from the company’s cost-restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic.

Balance Sheet Details

As of Mar 31, 2021, 3D Systems had cash and cash equivalents of $133 million, up from the previous quarter’s $75 million. The company held no debt at the end of the quarter.

3D Systems had an unused revolving credit facility worth $100 million, with roughly $92 million currently available.

Zacks Rank and Stocks to Consider

3D Systems currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , ASML Holding N.V. (ASML - Free Report) and NVIDIA (NVDA - Free Report) . While Lam Research and ASML Holding sport a Zacks Rank #1 (Strong Buy), NVIDIA carries a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Lam Research, ASML Holding, and NVIDIA is currently pegged at 32.8%, 29.8% and 15.1%, respectively.

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