3D Systems Corp.NYSE
3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 Comments
Fri, Oct. 14, 11:04 AM
- 3D printing has been under pressure of late, with 3D Systems (DDD -3.7%) lower by 18%, Stratasys (SSYS -3.3%) 12%, ExOne (XONE -1.8%) 9% and Materialise (MTLS +5.1%) 3.5% this week alone.
- Piper Jaffray's Troy Jensen cites continued weakness in prototyping, growing competition and general macro headwinds negatively impacting the sector.
- On Stratasys (Neutral rating): "While last quarter a few of Stratasys’ largest resellers had better than expected quarters, we believe most of the Stratasys larger resellers fell below expectations in Q3."
- On 3D Systems (Underweight rating): "Given our quarterly survey pointed to weakening system sales, we expect the company to once again report revenues below Street estimates, but due to the company’s ongoing restructuring initiatives we believe EPS will be less at risk. Regardless, we believe meaningful downside remains in shares."
- 3D Systems, Stratasys, ExOne and Materialise to report results next month.
Mon, Sep. 12, 11:45 AM
- 3D Systems (DDD +1.5%) today offers its strategy to evolve from 3D prototyping through a partnership with PTC (PTC -0.2%), Figure 4 technology, 3DXpert Direct Metal Printing software and an updated management team.
- 3D Systems President and CEO Vyomesh Joshi: “Rapid prototyping was the original application for 3D printing and will continue to be an important part of our business. However, we believe we have the technology and assets today to make 3D production real and provide profitable growth for our company.”
- The company will elaborate further on its plans at the IMTS 2016 industrial trade show in Chicago.
- Live stream
Tue, Sep. 6, 6:55 PM
- GE's $1.4B purchase of a pair of 3D-printer companies sent stocks in the group soaring in today's trade, with 3D Systems (NYSE:DDD) closing +5.5%, Stratasys (NASDAQ:SSYS) +3.7%, Voxeljet (NYSE:VJET) +4.6% and ExOne (NASDAQ:XONE) +5.8%.
- But GE closed 0.7% lower, as analysts say that while 3D printing is promising, GE’s acquisitions are a “net negative” because there are relatively few short-term benefits.
- “This seems like a relatively outsized and expensive bet, with no near-term return, and an incremental opportunity cost when considering the ongoing debate around what we view as finite balance sheet capacity,” says J.P. Morgan's Steve Tusa.
- Cowen analyst Gautam Khanna takes a longer view, saying that “while the deals appear pricey, they help position GE to lead, implement and control additive manufacturing processes that will become important cost-reduction levers long term in Aviation and elsewhere."
- As for the 3-D companies, Citigroup’s Kenneth Wong says that while the GE deal does not present any immediate competition for them, it does not necessarily suggest any buyout implications for the companies since GE is focusing on metal applications.
Tue, Sep. 6, 8:37 AM
Wed, Aug. 31, 3:00 PM
Thu, Aug. 4, 12:44 PM
- 3D Systems (DDD -0.6%) is up more than 15% since reporting Q2 results earlier this week. Stratasys (SSYS -2.8%) reported yesterday and following an initial spike, has fallen nearly 10% from today's open.
- The companies each posted EPS of $0.12 (both beating estimates by $0.06) though registered 5.6% (Stratasys) and 7.3% (3D Systems) declines in Y/Y revenue, continuing a now four-quarter trend. Both have cited weakening demand in the 3D printer market.
- From 3D Systems: "Quarterly revenue benefited from continued strong demand for the company’s healthcare solutions and software as well as higher materials orders from healthcare and industrial customers. However, these gains were not enough to offset the lower demand for 3D printers and on demand manufacturing in the quarter, resulting in a 7% decrease in revenue compared to the second quarter of 2015."
- From Stratasys: "We continue to see weak market demand and longer sales cycles resulting in slow hardware sales across all regions and business units."
- With similar reports and market viewpoints, it's worth observing where the two companies go from here.
Wed, Aug. 3, 3:00 PM
Wed, Aug. 3, 12:48 PM
Wed, Aug. 3, 9:32 AM
- 3D Systems (DDD +5.1%) reported better-than-expected EPS of $0.12 but missed on revenue ($158.1M) by $2.91M, a 7.3% Y/Y decline.
- Revenue decrease attributed to lower 3D printer and on demand manufacturing need.
- Gross profit margin of 50.9% (vs. 47.9% Y/Y), $12.9M of cash from operations.
- Strong demand and growth in healthcare, software and materials segments cited.
- Operating expenses of $84.1M, SG&A expenses of $63.2M and R&D expenses of $20.9M. Cash on hand of $176.2M.
- 3D Systems CEO Vyomesh Joshi: "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."
- Conference call
- Presentation slides
- Press release
Wed, Aug. 3, 8:01 AM
Tue, Aug. 2, 5:30 PM
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Mon, Jul. 18, 3:00 PM
Mon, Jul. 18, 12:46 PM
Wed, Jun. 15, 5:49 PM
- John McMullen, until now Kodak's (NYSE:KODK) CFO, has been hired by 3D Systems (NYSE:DDD) to be its CFO, effective July 1. McMullen replaces David Styka, who was only named CFO in May 2015. Styka will "remain with the company to provide operational and financial support to Management."
- Kodak has named David Bullwinkle, a 12-year company vet and Kodak's financial planning/analysis and IR chief since 2010, its new CFO.
- 3D's CFO change shortly follows the resignations of COO Mark Wright and marketing chief Cathy Lewis, and arrives two months after former HP printing chief Vyomesh Joshi was named CEO.
Tue, Jun. 7, 3:18 PM
- The departures of 3D Systems (DDD -1.2%) COO Mark Wright and marketing chief Cathy Lewis (disclosed this morning) are part of a 3-part plan to remake the company under new CEO Vyomesh Joshi, says 3D's IR chief. "Not every position will be viewed as necessary," she adds.
- Phase 1 of the plan involved "listening and learning." Phase 2 involves setting strategy, and phase 3 involves creating the organizational structure needed to support the strategy.
- 3D is coming off a Q1 in which its sales fell 5% Y/Y, as the company contends with excess supply among industrial clients. Shares have more than doubled from a January low of $6.00, but remain far below their late-2013/early-2014 highs.
Tue, Jun. 7, 8:21 AM| Tue, Jun. 7, 8:21 AM | 3 Comments