3D Systems Keeps Up Frantic Acquisition Pace

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By Paul Ausick Updated Published

3D pointedsphere

courtesy of 3D Systems Inc.
3D Systems Corp. (NYSE: DDD) announced on Wednesday that it has acquired privately held Digital PlaySpace for an undisclosed sum. This is the 3D printer maker’s fifth acquisition since December and puts the firm close to 50 acquisitions in the past three years or so.

Digital PlaySpace is a software platform and an app that runs on social media giant Facebook Inc.’s (NASDAQ: FB) site that allows users to create custom 3D objects. The platform will then allow users to print the objects directly to 3D Systems’ Cubify printers or send them to the company’s fulfillment service.

3D Systems shows again that it has not given up on its strategy to build the largest ecosystem it can for its consumer products with a long-term goal in mind rather than seeking shorter term profits. Last week the company struck a deal with toymaker Hasbro Inc. (NYSE: HAS) that adds a portfolio of Hasbro brands to 3D Systems’ stable.

The company is scheduled to announce fourth quarter earnings next week, and analysts are expecting earnings per share of $0.20 on revenues of $155.1 million. Full-year earnings per share are slated at $0.86 on revenues of $513.66 million. If 3D Systems makes those numbers, profits will have risen 3.6% compared with 2012 and revenues will have jumped 45%.

3D Systems raised its revenue guidance at the end of the third quarter from a range of $485 to $510 million to a new range of $500 to $530 million. Analysts are looking at something below the midpoint of the new range and their earnings per share estimates are well below the company’s guidance of $0.93 to $1.03. The new earnings per share guidance 3D Systems provided in October was lower than its previous estimate due to increases in R&D spending, marketing and field operations, and retail channel expansion.

3D Systems’ stock is down about 0.6% in mid-afternoon trading at $76.74 in a 52-week range of $27.88 to $97.28.

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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