3D Systems Corp. (NYSE: DDD) reported its second-quarter financial results before the markets opened on Wednesday. Looking at the report, quarterly revenue continued to benefit from strong demand for the company’s health care solutions and software, as well as higher materials orders from health care and industrial customers.
On the other hand, these gains were offset by a lower demand for 3D printers and on-demand manufacturing this quarter. In turn, this pulled revenue down by about 7%.
The company posted $0.12 in earnings per share (EPS) on $158.1 million in revenue. The Thomson Reuters consensus estimates had called for $0.06 in EPS on $161 revenue of million. In the same period of last year, EPS of $0.03 and $170.5 million in revenue were posted.
In the second quarter, gross profit margin increased to 50.9% benefiting from the company’s shift away from consumer products and increased sales of higher margin materials. The same period of last year had a 47.9% gross profit margin.
Vyomesh Joshi, CEO of 3D Systems, commented:
We were pleased with continued strong demand for our healthcare solutions and software as well as increased materials sales into advanced industrial and healthcare applications. We see clear opportunities for improvements in 3D printers and on demand manufacturing services as we drive operational excellence and focus on providing reliable end-to-end solutions.
He added:
We are building a comprehensive strategy and assembling a world-class team and organizational structure we believe will enable us to deliver exceptional customer value, drive profitable growth and accelerate digital manufacturing.
The company generated $12.9 million of cash from operations during the quarter. On the books, 3D Systems cash and cash equivalents totaled $176.25 million at the end of the quarter, versus $155.64 million at the end of 2015.
Shares of 3D Systems closed Tuesday down about 4% at $12.18, with a consensus analyst price target of $13.98 and a 52-week trading range of $6.00 to $19.76. Following the release of the earnings report, the stock was up 3% at $12.55 in early trading indications Wednesday.
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