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3D Systems (DDD) Up 1.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
3D Systems' Q4 Earnings & Revenues Surpass Estimates
3D Systems reported fourth-quarter 2021 non-GAAP earnings of 9 cents per share, beating the Zacks Consensus Estimate of 3 cents per share. The bottom line remained flat year over year.
In the fourth quarter of 2021, 3D Systems reported revenues of $150.9 million, down 12.6% from the year-ago quarter and 3.5% from the previous quarter. Excluding the impact of business divestments in 2021, revenues surged 13.1% year over year. The top line outpaced the consensus mark of $144.6 million.
Top-Line Details
In the fourth quarter, product revenues represented 77.9% of the total revenues and jumped 4.5% to $117.6 million. Meanwhile, revenues from Services, which accounted for 22.1% of revenues, plunged 44.6% year over year to $33.3 million.
Revenues from the Healthcare segment fell 12.9% year over year to $74.5 million. The figure declined 2.5% from the prior quarter. Excluding the impact of business divestments in 2021, the segment’s revenues increased 5.1% year over year.
The industrial division revenues decreased 12.3% year over year to $76.4 million and 4.1% sequentially. Excluding the impact of business divestments in 2021, the unit’s revenues increased 22.2%. The company witnessed solid demand for products as well as materials.
Operating Details
During the fourth quarter of 2021, 3D Systems’ non-GAAP gross profit decreased 10.3% year over year to $66.5 million. However, non-GAAP gross profit margin expanded 120 basis points (bps) to 44.1%. This increase was driven by high production levels and improved inventory management caused by increased supply chain resilience.
Non-GAAP operating expenses decreased 6.4% to $54.3 million. The downside was due to savings achieved from cost restructuring activities, and reduced SG&A expenses.
Non-GAAP operating income declined 23.6% to $12.3 million.
Adjusted EBITDA was $17.9 million. The margin of 11.8% reflected disciplined approach to growth, cost management and focus on core businesses..
Balance Sheet Details
The global leader in additive manufacturing solutions exited the fourth quarter with cash and cash equivalents of $789.7 million, significantly higher from the prior quarter’s $502.8 million. As of Dec 31, 2021, 3D Systems had a total debt of $460 million.
During the full-year 2021, the company generated $48.1 million of operating cash flow.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -181.25% due to these changes.
VGM Scores
At this time, 3D Systems has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise 3D Systems has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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3D Systems (DDD) Up 1.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
3D Systems' Q4 Earnings & Revenues Surpass Estimates
3D Systems reported fourth-quarter 2021 non-GAAP earnings of 9 cents per share, beating the Zacks Consensus Estimate of 3 cents per share. The bottom line remained flat year over year.
In the fourth quarter of 2021, 3D Systems reported revenues of $150.9 million, down 12.6% from the year-ago quarter and 3.5% from the previous quarter. Excluding the impact of business divestments in 2021, revenues surged 13.1% year over year. The top line outpaced the consensus mark of $144.6 million.
Top-Line Details
In the fourth quarter, product revenues represented 77.9% of the total revenues and jumped 4.5% to $117.6 million. Meanwhile, revenues from Services, which accounted for 22.1% of revenues, plunged 44.6% year over year to $33.3 million.
Revenues from the Healthcare segment fell 12.9% year over year to $74.5 million. The figure declined 2.5% from the prior quarter. Excluding the impact of business divestments in 2021, the segment’s revenues increased 5.1% year over year.
The industrial division revenues decreased 12.3% year over year to $76.4 million and 4.1% sequentially. Excluding the impact of business divestments in 2021, the unit’s revenues increased 22.2%. The company witnessed solid demand for products as well as materials.
Operating Details
During the fourth quarter of 2021, 3D Systems’ non-GAAP gross profit decreased 10.3% year over year to $66.5 million. However, non-GAAP gross profit margin expanded 120 basis points (bps) to 44.1%. This increase was driven by high production levels and improved inventory management caused by increased supply chain resilience.
Non-GAAP operating expenses decreased 6.4% to $54.3 million. The downside was due to savings achieved from cost restructuring activities, and reduced SG&A expenses.
Non-GAAP operating income declined 23.6% to $12.3 million.
Adjusted EBITDA was $17.9 million. The margin of 11.8% reflected disciplined approach to growth, cost management and focus on core businesses..
Balance Sheet Details
The global leader in additive manufacturing solutions exited the fourth quarter with cash and cash equivalents of $789.7 million, significantly higher from the prior quarter’s $502.8 million. As of Dec 31, 2021, 3D Systems had a total debt of $460 million.
During the full-year 2021, the company generated $48.1 million of operating cash flow.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -181.25% due to these changes.
VGM Scores
At this time, 3D Systems has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise 3D Systems has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.