3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 Comments
3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 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.
Thu, Feb. 25, 6:04 PM
- 3D Systems (NYSE:DDD) is delaying the release of its 2015 10-K due to the need for extra time to do work related to its Q4 goodwill/asset impairment charge (expected to amount to $510M-$570M).
- The company is also delaying its Q4 earnings call (and presumably its Q4 earnings release), which had been scheduled for Feb. 29. The call will now coincide with the filing of the 10-K.
- Revised Q4 sales guidance of $183M (issued on Feb. 11) has been reiterated. 3D adds it expects to report operating expenses fell by ~$90M Q/Q, excluding the goodwill/impairment charge.
- Shares are nearly unchanged after hours.
Thu, Feb. 11, 9:13 AM
- Gainers: DDD +15%. AG +14%. FSM +13%. TRIP +12%. MUX +11%. AUY +11%. SBGL +11%. GFI +10%. AGI +10%. LC +10%. GG +10%. CDE +9%. EGO +9%. KGC +9%. HMY +9%. IAG +9%. EXPE +8%. ABX +8%. NEM +8%. SLW +8%. SSRI 8%. AU 7%. AEM 7%. HL 7%. NG 7%. CSCO 6%. SKX 5%.
- Losers: FLO -18%. INCY -15%. SFL -13%. MYL -13%. BTU -13%. ZNGA -13%. SNOW -11%. IFF -10%. ELMD -9%. AVP -8%. CS -7%. BCS -7%. SUNE -6%. CIG -5%. TWTR -6%.
Thu, Feb. 11, 8:44 AM
- The company expects Q4 revenue to come in at $183M vs. $160M expected. The charge related to the shift away from consumer products will be about $27M.
- After annual goodwill and intangibles testing, the company anticipates booking a noncash charge of $510M-$570M.
- At year-end, DDD had $156M in the bank and no draws under its $150M revolver.
- Interim CEO Andy Johnson: "Industry conditions remain challenging and demand may be uneven in the coming periods."
- Full Q4 results are due on Feb. 29.
- Source: Press Release
- Shares +10.9% premarket to $8.95.
Thu, Feb. 4, 2:23 PM
- German 3D printer maker Voxeljet (VJET +8.9%) is up 10% since guiding on Tuesday afternoon for 2016 revenue of €28M-€30M ($31.4M-$33.6M), slightly below a €30.4M consensus but above 2015 guidance of €23M-€24M and perhaps better than feared in light of recent industry woes.
- Beaten-up peers have also been doing well, perhaps with the help of profit-taking from shorts. 3D Systems (DDD +8%) is up 23% over the last two days, Stratasys (SSYS +4.3%) is up 10%, and ExOne (XONE +12.1%) is up 20%.
- Voxeljet is now aiming for a 25%-30% Y/Y long-term revenue growth rate. Gross margin is expected to rise to 40%-42% in 2016 - GM for the first 9 months of 2015 was only 33.3% - and full-year EBITDA is expected to be "neutral-to-positive." 3D and Stratasys are expected to post Q4 results in the coming weeks.
Mon, Jan. 25, 10:34 AM
- Citing Asian weakness and forex swings, Jefferies' Jason North has respectively cut his Stratasys (SSYS -4.6%) and 3D Systems (DDD -2%) targets by $7 and $3.50 to $30 and $7.50, while also lowering 2016 estimates. Stratasys remains rated a Buy, and 3D a Hold.
- Stratasys and 3D are both expected to deliver Q4 reports in the coming weeks. North's cuts come six days after Piper's Troy Jensen reported (citing checks with 3D printing resellers) printer demand remained soft in Q4, as prototyping clients continued digesting excess capacity. However, Jensen (cautious for some time about demand) added industry contacts suggest demand is starting to improve, and that pipelines are strong going into 2016.
- Stratasys now trades for just 1.2x a 2016 sales consensus of $720.3M. Likewise, 3D trades for 1.2x a 2016 sales consensus of $660.3M.
Fri, Jan. 22, 3:30 PM
- Plenty of tech names crushed over the first 20 days or so of January are sharply higher as the Nasdaq (up 2.4%) continues rebounding from Wednesday's intraday lows. Many still have sizable YTD losses.
- Big gainers among telecom equipment/component firms: Optical component vendors Oclaro (OCLR +9.5%) and NeoPhotonics (NPTN +6%), mobile infrastructure/services giant Ericsson (ERIC +6.2%), optical networking hardware vendor Infinera (INFN +5.2%), and microcap RF backhaul hardware firms DragonWave (DRWI +24.3%) and Ceragon (CRNT +10%). Ericsson underperformed yesterday following a pre-earnings Goldman downgrade.
- Among enterprise tech firms: Threat-prevention technology and services provider FireEye (FEYE +7.7%), big data software provider Hortonworks (HDP +16.1%), security software/services firm Rapid7 (RPD +9.1%), data governance software firm Varonis (VRNS +5.6%), and flash storage array vendor Violin Memory (VMEM +13.6%). FireEye fell slightly yesterday after making a Q4 pre-announcement and announcing a $200M+ acquisition. Hortonworks was crushed on Tuesday after a Q4 pre-announcement and stock offering shelf registration.
- Among chip industry firms: RF chipmaker Skyworks (SWKS +6%), audio codec developer Cirrus Logic (CRUS +7.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +6.5%), FPGA/sensor hub maker QuickLogic (QUIK +9.2%), and chip equipment firms Axcelis (ACLS +4.9%) and Aixtron (AIXG +4.9%). Major Cirrus/Skyworks client Apple reports on Tuesday afternoon.
- Also up big: 3D printer maker 3D Systems (DDD +7.1%), Russian search leader Yandex (YNDX +7.5%), mortgage origination software firm Ellie Mae (ELLI +6.4%), Chinese solar firm Yingli (YGE +11.4%), and SMB Web services provider Wix.com (WIX +5.3%).
- Previously covered: Rosetta Stone, Live Ventures, HP Enterprise, Mitel, Mobileye, Qorvo, SunPower, SolarCity
Wed, Jan. 20, 9:13 AM
Fri, Jan. 15, 2:53 PM
- In Wall Street's latest bloodletting, the Nasdaq is down 3.1% and the S&P 2.4%. The decline comes amid tumbling energy prices (crude is below $30/barrel), soft macro data, and disappointing earnings reports from the likes of Intel and Citigroup.
- Tech companies seeing outsized losses amid the carnage include chipmakers NXP (NXPI -8.1%), Qorvo (QRVO -8.9%), InvenSense (INVN -3.7%), IDT (IDTI -6.4%), Sigma Designs (SIGM -6.5%), and Knowles (KN -6.6%), as well as solar plays Trina (TSL -9.3%), ReneSola (SOL -11.5%), JinkoSolar (JKS -10.7%), Enphase (ENPH -8.5%), and Canadian Solar (CSIQ -8.4%).
- Also off sharply: Action camera leader GoPro (GPRO -8.7%), 3D printer maker 3D Systems (DDD -7.5%), daily deals leader Groupon (GRPN -6.4%), server interconnect provider Mellanox (MLNX -8.5%), OLED materials/IP provider Universal Display (OLED -10.3%), Latin American online marketplace MercadoLibre (MELI -7.2%), data management software firm Varonis (VRNS -8.3%), ad tech firm Rocket Fuel (FUEL -7.1%), Chinese online retailers Vipshop (VIPS -6.9%) and Jumei (JMEI -12.7%), and home automation system provider Control4 (CTRL -7.8%).
- GoPro is down 22% since issuing a Q4 warning on Wednesday afternoon. Trina has been downgraded to Neutral by Goldman. IDT and Mellanox could be affected by the weaker-than-expected Q4 sales reported for Intel's server CPU division (DCG).
- Previously covered: Chip equipment makers, Yandex/Qiwi, Intel, Textura, PC industry firms, Rackspace, CommVault, Ericsson
- Wednesday's notable decliners
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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