3D Systems Rises Despite Top-Line Miss

By Chris Lange Updated Jan 13, 9:50AM EST · Published May 5, 8:40AM EDT

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3D Systems Corp. (NYSE: DDD) reported its first-quarter financial results before the markets opened on Thursday. The company said it had $0.05 in earnings per share (EPS) on $152.6 million in revenue. Thomson Reuters consensus estimates had called for $0.05 in EPS on revenue of $156.30 million. In the same period of last year, the company posted EPS of $0.05 and $160.72 million in revenue.

During the quarter, revenues dropped by about 5% from the same period last year. However, excluding the contribution of consumer products and services that the company no longer sells, revenue only decreased by 2%.

Despite revenue dropping from last year, gross profit margins totaled 50.8% for this quarter.

In terms of its business segments 3D Systems reported the following:

Product revenues totaled $91.0 million, down from $99.8 million in last year’s quarter.
Service revenue totaled $61.6 million, up from $60.9 million.

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Vyomesh Joshi, CEO of 3D Systems, commented:

I’ve spent the past month listening to and learning from customers, partners and employees. I will be focusing on improving quality, reliability and supply chain. The next phase for us is to develop a strategy to drive profitable growth with operational excellence and an appropriate cost structure.

The company generated $18.1 million of cash from operations during the quarter. On the books, cash and cash equivalents totaled $169.8 million at the end of the quarter, compared to $155.6 million at the end of 2015.

Shares of 3D closed Wednesday down 5.5% at $14.51, with a consensus analyst price target of $14.55 and a 52-week trading range of $6.00 to $23.98. Following the release of the earnings report, the stock was up 5.6% at $15.32 in early trading indications Thursday.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.