3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 Comments
Yesterday, 9:13 AM
- Margins jumped for 3D Systems (NYSE:DDD) in its Q1 results amid the company's shift away from consumer products, though its net loss widened.
- Adjusted profits met expectations, however, and operating expenses declined. Shares are up 1.3% premarket.
- Gross margins were up to 50.8%, 170 basis points better than a year ago.
- Revenue overall fell without the help of consumer products that the company doesn't sell anymore. Revenue breakout: Products, $90.96M (down 8.9%); Services, $61.6M (up 1.1%).
- Cash from operations came to $18.1M; cash on hand was $169.8M at March's end.
- Press Release
Yesterday, 8:03 AM
Wed, May 4, 5:30 PM
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Fri, Apr. 15, 8:59 AM
- Stratasys (NASDAQ:SSYS) and 3D Systems (NYSE:DDD) have sunk premarket -- by 3.6% and by 3.8% respectively -- after a Citi update on 3D printing downgraded both stocks on valuation.
- Analyst Kenneth Wong downgraded 3D Systems to Sell, while boosting its price target after yesterday's pop, to $15 from $10 -- about 18% below yesterday's closing price of $18.27.
- The company's hire of CEO Vyomesh Joshi is welcomed, but upside looks overstated, Wong says -- and the prospect of an acquisition by HP is "highly unlikely."
- Stratasys gets a downgrade as well, to Neutral; "near-term upside is limited" as industry checks look soft. While unit volumes have held up, Wong says, there looks like a shift toward buying lower-priced systems, and service bureau utilization looks lower than usual.
- Now read Stratasys: Game Changing Printer? »
Thu, Apr. 14, 12:45 PM
Thu, Apr. 14, 9:41 AM
- 3D Systems (DDD +15.3%) rallies after Bank of America does a quick turn from a bear to a bull on the tech stock.
- The about-face is largely tied to the hiring off CEO Vyomesh Joshi who is seen leading a turnaround.
- BAML thinks 3D's profits will improve as the cost structure is re-aligned.
- BAML EPS estimate revisions: 2016 to $0.30 from $0.28, 2017 to $0.57 from $0.39, 2018 to $0.71 from $0.43.
- Shares are rated at Buy after being tagged previously at Underperform.
- Previously: 3D Systems appoints Joshi as CEO (April 4)
- Now read The 3D Printing Industry Is Still Growing
Thu, Apr. 14, 9:25 AM
Tue, Mar. 15, 9:17 AM| Tue, Mar. 15, 9:17 AM | 4 Comments
Mon, Mar. 14, 12:45 PM
Mon, Mar. 14, 9:22 AM
- 3D Systems (NYSE:DDD) is up 15.3% premarket to $13.32 after (belatedly) posting a large Q4 beat. The numbers come 11 days after rival Stratasys delivered a Q4 beat and issued strong guidance, and are stoking hopes the 3D printing industry, hit hard last year as clients worked through excess capacity, is finally bottoming.
- 3D didn't provide any formal guidance in its earnings release. Interim CEO Andrew Johnson: "While market conditions remain challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter ... We are continuing an extensive and comprehensive review of our business and strategy and taking steps to better prioritize our resources and focus our investments."
- Q4 details: Product revenue fell 10% Y/Y to $116M. Services revenue rose 16% to $67.4M. Gross margin was 47.7%, +80 bps Q/Q and -20 bps Y/Y. GAAP operating expenses rose a modest 4% Y/Y to $88.9M - $66.5M was spent on SG&A, and $22.4M on R&D.
A $537.2M impairment charge was recorded. 3D ended 2015 with $155.6M in cash and almost no debt.
- Stratasys (NASDAQ:SSYS) is up 6.5% premarket. ExOne (NASDAQ:XONE) is up 1.1%. Voxeljet (NYSE:VJET) is up 3.9%.
- 3D Systems' Q4 results, earnings release
Mon, Mar. 14, 9:17 AM
Mon, Mar. 14, 8:05 AM
Sun, Mar. 13, 5:30 PM
Fri, Mar. 4, 11:34 AM
- Is the bottom finally in? Stratasys (SSYS +18.6%) is now up 39% since beating Q4 estimates and issuing strong 2016 sales/EPS guidance on Thursday morning. 3D Systems (DDD +9.2%) and ExOne are up 16%, and Voxeljet (VJET +7.4%) is up 18%. As with prior big moves higher for 3D printing firms, short-covering is likely playing a big role.
- Compared with the more bullish tone shown at higher levels, analyst reactions to Stratasys' numbers have been mixed. Piper's Troy Jensen (Overweight rating), who reported in January 3D printing demand was beginning to remove after months of weakness, likes Stratasys' cost-cutting efforts, and thinks interest and demand for the company's products is healthy. However, Deutsche's Sherri Scribner (Hold rating) argues an industry printer glut prevent a major 2016 demand rebound from occurring.
- Pac Crest's Weston Twigg also isn't yet sold on a near-term demand recovery. Materialise (MTLS +4%), which posted a Q4 beat on Wednesday, is his favorite 3D printing idea. "Materialise ... benefits from high growth in its software and printing services, even as demand for 3D printers has remained soft ... Over the long term, Materialise should be a central figure in the transition to 3D printed prosthetics, where it provides key surgical planning software, collaborative partnerships, and printed surgical guides and implants."
Thu, Mar. 3, 10:05 AM
- Stratasys' (SSYS +9.3%) Q4 beat has been accompanied by guidance for 2016 revenue $700M-$730M and EPS of $0.17-$0.43, largely above consensus estimates of $700.6M and $0.18. At the midpoint, the sales guidance implies 2% Y/Y growth.
- With industry demand weak, product revenue fell 26% Y/Y in Q4 to $124.3M. Services revenue rose 1% to $49.1M. Non-GAAP gross margin fell to 48.1% from 56% a year ago; 2016 GM guidance is at 54%-55%.
- Boosting EPS: Operating expenses fell 4% to $92.3M. Stratasys ended 2015 with $258M in cash and no debt. The company expects to spend $60M-$70M in 2016 on capex.
- Stratasys: "Our goal is to maintain our leadership position in prototyping, while developing a solutions-based business model that targets key vertical markets and emerging applications for end-use parts ... Given the current environment, we recognize the importance of optimizing our cost structure and improving our financial performance, and have made those goals a priority for 2016."
- 3D printing peers 3D Systems (DDD +5.4%), Voxeljet (VJET +5.3%), ExOne (XONE +4.9%), and Materialise (MTLS +5.1%) are also higher.
- Stratasys' Q4 results, earnings release
Tue, Mar. 1, 1:48 PM
- Continuing a recent rally, beaten-down 3D printing stocks are outperforming on a day the Nasdaq is up 2.4%, and the S&P 2.1%.
- Belgian 3D printing software/services firm Materialise (MTLS +16.3%), which reports tomorrow morning, is the biggest gainer. This morning, Materialise announced a software/services platform (the Mimics Care Suite) for enabling 3D printing in hospitals.
- 3D printer makers 3D Systems (DDD +6.5%), Stratasys (SSYS +7.6%), ExOne (XONE +5.6%), and Voxeljet (VJET +5.9%) are also doing quite well. Stratasys reports on Thursday morning; 3D was due to report yesterday, but recently delayed its Q4 report and 2015 10-K filing to give itself more time to do work related to a Q4 impairment charge.
- Though still trading at a fraction of their early-2014 highs, 3D is now up 89% from a Jan. 20 low of $6.00, and Stratasys up 40% from a Feb. 12 low of $14.48. The companies respectively had 29% and 20% of their floats shorted as of Feb. 12. However, those numbers are down noticeably from a few months ago.
3D Systems Corp. is a holding company, which engages in the provision of three dimensional (3D) printing centric design-to-manufacturing solutions. The firm offers 3D printers, Quickparts solutions, 3D authoring tools and scanners, Bespoke Modeling, and TeamPlatform. It operates through the... More
Industry: Application Software
Country: United States
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