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3D Systems (DDD) Expands Portfolio With Precision Partnership

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3D Systems (DDD - Free Report) is expanding its footprint in the additive manufacturing landscape through its recent partnership with Precision Resource, a renowned leader in producing critical components for the automotive, heavy-duty, aerospace and medical device industries.

The collaboration aims to scale and accelerate additive manufacturing by leveraging the combined expertise of organizations and integrating the 3D Systems advanced Direct Metal Printing (DMP) platform into Precision Resource’s manufacturing processes.

Through this collaboration, Precision Resource will enhance its AS9100-certified Huntington Beach, CA facility with the addition of two 3D Systems DMP Flex 350 Dual 3D printers.

The integration aims to provide new solutions to meet evolving customer needs, address supply chain challenges and open new market opportunities through a robust end-to-end manufacturing solution for high-criticality components.

3D Systems Benefits From Robust Portfolio

The latest move bodes well with DDD’s focus on expanding its additive manufacturing capabilities and addressing supply chain challenges through strategic partnerships and advanced technology integration.

3D Systems expects the additive manufacturing industry to witness a CAGR of more than 20% over the next five to seven years, hitting $80 billion during this timeframe. This opportunity bodes well for DDD, given its portfolio strength and high investments in research & development.

DDD’s increasing demand for metal 3D printing services has been a major growth driver. In March, the company announced that Wilting, an industrial machining and metal 3D printing service provider, expanded its manufacturing capabilities with three new DMP Flex 350 metal 3D printers, enhancing production capacity and material diversity to meet growing customer demands.

DDD also announced that WeAreAM in Italy added the DMP Flex 350 Dual to its Center of Excellence, enhancing its additive manufacturing capabilities across various industrial markets.

Further expanding its portfolio, DDD recently announced the EXT 800 Titan Pellet, a compact and cost-effective addition to its pellet extrusion systems. It offers faster print speeds and lower material costs for diverse manufacturing applications.

DDD Stock Down on Persistent Headwinds

Despite 3D System’s robust portfolio, macroeconomic and geopolitical uncertainties have been a concern. Persistent inflation have kept customer budgets under pressure.

Increasing competition, particularly from new entrants in China in the hardware side of the business, has been a headwind.

These factors have hurt performance in the year-to-date period, with DDD shares declining 44.8% against the Zacks Computer & Technology sector’s return of 29.6%.

For 2024, DDD projects non-GAAP revenues to be between $475 million and $505 million. The Zacks Consensus Estimate for revenues is pegged at $486.01 million, indicating a 0.42% decline year over year.

The Zacks Consensus Estimate for earnings is pegged at a loss of 10 cents per share, unchanged in the past 30 days.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) and Dropbox (DBX - Free Report) , each sporting a Zacks Rank #1(Strong Buy), while Garmin (GRMN - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here

Arista Networks’ shares have gained 57.6% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 16.07%. 

Garmin’s shares have gained 25.7% in the year-to-date period. The long-term earnings growth rate for GRMN is pegged at 8.04%.

Shares of Dropbox have declined 24.6% in the year-to-date period. The long-term earnings growth rate for DBX is pegged at 11.44%.

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