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3D Systems (DDD) Up 10.7% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 10.7% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
3D Systems Q4 Earnings Miss Estimates, Revenues Down Y/Y
3D Systems reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 5 cents per share in the year-ago quarter.
The company reported revenues of $123.8 million, which declined 6.4% year over year and lagged the consensus mark by 0.07%.
In the third quarter, Product revenues represented 42.4% of total revenues and decreased 18.3% to $80.4 million. The figure lagged the Zacks Consensus Estimate by 2.05%.
Services revenues, which accounted for the remaining 35% of revenues, jumped 20.8% year over year to $43.4 million. The figure beat the consensus mark by 4.27%.
Quarter Details
In the fourth quarter, based on market type, Healthcare revenues fell 15.7% year over year to $51.2 million. On a constant-currency basis, the segment’s revenues fell 16.4% year over year, mainly due to continued softness across the dental orthodontic market.
The Industrial Division’s revenues fell 11.6% year over year to $63.7 million. On a constant-currency basis, the segment’s revenues declined 13.3%. A slowdown in printer sales caused the downside.
3D Systems’ non-GAAP gross profit fell 11.2% year over year to $48.2 million. The non-GAAP gross profit margin expanded 110 basis points to 41.9%, primarily driven by improved operational efficiencies and a favorable mix.
Adjusted EBITDA nosedived $12.3 million compared to a negative adjusted EBITDA of $4.8 million in the year-ago quarter. The downtick was mainly caused by reduced revenues and higher operating expenses, primarily due to investments in Regenerative Medicine and a temporary rise in consulting and outside services expenses.
Balance Sheet
As of Dec 31, 2023, cash, cash equivalents and short-term investments were $331.6 million, lower than $445.6 million as of Sep 30.
As of Dec 31, 2023, 3D Systems had a total debt of $319.3 million, down from $451.5 million as of Sep 30.
Guidance
For 2024, 3D Systems expects revenues between $ 475 million and $505 million.
The non-GAAP gross profit margin is expected to be 42-44% for the full year of 2024.
The non-GAAP operating expenses are projected in the $223-$238 million range for the full year of 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -42.86% due to these changes.
VGM Scores
At this time, 3D Systems has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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 #4 (Sell). We expect a below average return from the stock in the next few months.
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3D Systems (DDD) Up 10.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 10.7% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
3D Systems Q4 Earnings Miss Estimates, Revenues Down Y/Y
3D Systems reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 5 cents per share in the year-ago quarter.
The company reported revenues of $123.8 million, which declined 6.4% year over year and lagged the consensus mark by 0.07%.
In the third quarter, Product revenues represented 42.4% of total revenues and decreased 18.3% to $80.4 million. The figure lagged the Zacks Consensus Estimate by 2.05%.
Services revenues, which accounted for the remaining 35% of revenues, jumped 20.8% year over year to $43.4 million. The figure beat the consensus mark by 4.27%.
Quarter Details
In the fourth quarter, based on market type, Healthcare revenues fell 15.7% year over year to $51.2 million. On a constant-currency basis, the segment’s revenues fell 16.4% year over year, mainly due to continued softness across the dental orthodontic market.
The Industrial Division’s revenues fell 11.6% year over year to $63.7 million. On a constant-currency basis, the segment’s revenues declined 13.3%. A slowdown in printer sales caused the downside.
3D Systems’ non-GAAP gross profit fell 11.2% year over year to $48.2 million. The non-GAAP gross profit margin expanded 110 basis points to 41.9%, primarily driven by improved operational efficiencies and a favorable mix.
Adjusted EBITDA nosedived $12.3 million compared to a negative adjusted EBITDA of $4.8 million in the year-ago quarter. The downtick was mainly caused by reduced revenues and higher operating expenses, primarily due to investments in Regenerative Medicine and a temporary rise in consulting and outside services expenses.
Balance Sheet
As of Dec 31, 2023, cash, cash equivalents and short-term investments were $331.6 million, lower than $445.6 million as of Sep 30.
As of Dec 31, 2023, 3D Systems had a total debt of $319.3 million, down from $451.5 million as of Sep 30.
Guidance
For 2024, 3D Systems expects revenues between $ 475 million and $505 million.
The non-GAAP gross profit margin is expected to be 42-44% for the full year of 2024.
The non-GAAP operating expenses are projected in the $223-$238 million range for the full year of 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -42.86% due to these changes.
VGM Scores
At this time, 3D Systems has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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 #4 (Sell). We expect a below average return from the stock in the next few months.