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3D Systems turns negative; revenue guidance upped, EPS guidance lowered

  • 3D Systems (DDD -3.4%) guides in its Q3 report for 2013 revenue of $500M-$530M; that's favorable to a prior range of $485M-$510M and a consensus of $505.4M. On the other hand, thanks to continued spending growth, 3D's EPS guidance range now stands at $0.93-$1.03 vs. a prior range of $1.05-$1.20 and a consensus of $1.01.
  • 3D's R&D spend, criticized in the past for being too meager, jumped 12% Q/Q and 95% Y/Y in Q3 to $10.8M, after rising 94% Y/Y in Q2; it's now at 8% of revenue. SG&A spend +40% Y/Y to $32.1M (24% of revenue).
  • Product revenue +76% Y/Y after rising 108% in Q2. Print materials growth accelerated to 30% from Q2's 12%, and services growth jumped to 38% from Q2's 19%. Growth rates were boosted some by acquisitions.
  • Gross margin was 52.6%, +80 bps Q/Q and Y/Y. Healthcare accounted for 12% of revenue, and consumer solutions 10%.
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Comments (6)
  • Izzy1
    , contributor
    Comments (193) | Send Message
     
    I own DDD. In my opinion DDD had excellent results. Revenue is the key at this stage. As more and more printers are sold DDD will sell more high margin product needed to manufacture. As long as they grow this company will do extremely. They are in the industrial, commercial and retail markets with state of the art equipment. Best of all they have an excellent CEO and other key executives. But I still expect a very volatile future for all 3D manufactures.
    29 Oct 2013, 09:59 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1497) | Send Message
     
    Amazon posted negative EPS and only 25% growth. Share price jumps.

     

    DDD posted +50% growth and positive EPS. Shares tank.

     

    Amazon is at the matured stage that should be making positive EPS.

     

    DDD is still in the early stage of rapid growth and EPS shouldn't matter much at this point.

     

    Talk about some kind of double standard investors have. The guidance is decreased EPS in the near future is for reinvestments of capital. That should lower the amount of taxes paid later and increase the amount of financial investment into growth. I don't understand how this is a bad move. Investors should actually embrace this.
    29 Oct 2013, 10:59 AM Reply Like
  • Bigisbetter
    , contributor
    Comments (600) | Send Message
     
    This is what makes an opportunity market has not yet saw
    7 Nov 2013, 08:00 AM Reply Like
  • dominojackson66
    , contributor
    Comments (2) | Send Message
     
    I own DDD as well. The results look good to me. R&D spend is critical for long term growth. these guys can't get a break.
    29 Oct 2013, 11:00 AM Reply Like
  • THRONG1963
    , contributor
    Comments (3) | Send Message
     
    This earnings report is incredible. People with influence post comments to send share prices in the direction that benefits them the greatest. When the fundamentals change, that is the time to question the investment you have made.
    29 Oct 2013, 02:57 PM Reply Like
  • LotsaBucks
    , contributor
    Comments (11) | Send Message
     
    I own DDD. 50% Y/Y growth is fantastic. I agree with the others above that not hitting the net earnings estimates is of no concern since the company is reinvesting profits into R&D. This isn't bad news, and as I write this, the stock has already recovered almost all of its losses from the early morning 3rd quater earnings erport announcemen. that shows that there are a lot of investers who see any drop as a buying opportunity.

     

    I still have concerns that the founders of this company sold a boatload of stock a few months back when the price was a lot lower, and I don't think that people are going to rush to staples to buy an expensive printer to make little plastic gizmos, but the business and industrial potential is off the charts.

     

    I also am not concerned that GE has flirted with 3D printing by buying a small company and I think the HP's talk of entering the 3D printer market is primarily just that--talk. DDD has a huge jump on competition
    29 Oct 2013, 02:57 PM Reply Like
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