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3D Systems (DDD) Q1 Earnings Miss Estimates, Revenues Down Y/Y

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3D Systems (DDD - Free Report) reported a non-GAAP loss of 17 cents per share in first-quarter 2024, wider than the Zacks Consensus Estimate of a loss of 7 cents. The company reported a loss of 9 cents per share in the year-ago quarter.

DDD generated revenues of $102.9 million, down 15.1% year over year and lagged the consensus mark by 6.4%. The downtick was mainly due to reduced printer sales from macroeconomic challenges affecting hardware demand, partly offset by growth in materials and services.

Product revenues declined 24.1% year over year to $64.1 million in the first quarter, contributing 62.2% to total revenues. 

Services revenues, contributing 37.8% to revenues, rose 5.4% year over year to $38.9 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

 

Quarter Details

In the first quarter, Healthcare revenues declined 6.8% year over year to $45.4 million, primarily due to reduced printer sales to a major orthodontics customer. However, growth in materials and services provided some offset.

The Industrial Division’s revenues fell 20.7% year over year to $57.5 million.

3D Systems’ non-GAAP gross profit fell 12.7% year over year to $41.2 million. The non-GAAP gross profit margin expanded 110 basis points to 40%, primarily driven by improved operational efficiencies and a favorable mix.

Adjusted EBITDA nosedived $20.1 million compared with a negative adjusted EBITDA of $10.1 million in the year-ago quarter. The downside in Adjusted EBITDA primarily reflects lower total sales volume and an increase in operating expenses.

Balance Sheet

As of Mar 31, 2024, cash and cash equivalents were $212 million, lower than $331.6 million as of Dec 31, 2023 

As of Mar 31, 2024, DDD had a total debt of $211 million, down from $319.3 million as of Dec 31, 2023.

Guidance

For second-quarter 2024, the company expects revenues to be between $113 million and $113.5 million.

Zacks Rank & Stocks to Consider

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

The stock has plunged 60.3% year to date compared with the Zacks Computer & Technology sector’s increase of 22.5%.

ADOBE (ADBE - Free Report) , Dell Technologies (DELL - Free Report) and nCino (NCNO - Free Report) are some better-ranked stocks that investors can consider in the broader sector. 

ADOBE and Dell Technologies carry a Zacks Rank 2 (Buy) at present, whereas nCino sports a Zacks Rank 1 (Strong Buy) at present. All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Adobe’s shares have declined 5.7% year to date. ADBE is scheduled to release third-quarter fiscal 2024 results on Sep 12.

Dell Technologies’ shares have surged 44.8% year to date. DELL is scheduled to release second-quarter fiscal 2025 results on Aug 29.

nCino’s shares have inched up 2% year to date. NCNO is set to report second-quarter fiscal 2025 results on Aug 27.


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