3D Systems: Pride Comes Before The Fall
Alex Cho • 61 Comments
Alex Cho • 61 Comments
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
Mon, Jul. 18, 3:00 PM
Mon, Jul. 18, 12:46 PM
Wed, May 18, 12:45 PM
- Stratasys (SSYS -2.5%) and 3D Systems (DDD -2.5%) are trading lower today as analysts warn of threats to their business from HP's (HPQ +0.9%) Jet Fusion 3D printers, detailed yesterday.
- Pacific Crest's Weston Twigg says it's a "negative" for those two companies, but not a surprising one. The competitive shakeout could take years, but HP's technology "could be disruptive, and customers have shown a high desire to partner with HP on the development of the printer," Twigg writes.
- Similarly, Piper Jaffray's Troy Jensen sees a (not overwhelming) threat in price and speed from HP's new printers. Low HP pricing could shrink pipelines, but some of 3D Systems' and Stratasys' printers "are better in certain applications."
- Twigg also thinks HP's printers could mean "modest" positives for less direct competitor Proto Labs (PRLB +0.9%), focused on the commercial market, and HP partner Materialise (MTLS -0.7%).
- Now read Stratasys: The Rally Will Remain Challenged »
Tue, May 17, 5:41 PM
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
3D Systems Corp. is a holding company, which engages in the provision of three dimensional (3D) printing centric design-to-manufacturing solutions. It offers 3D printers, Quickparts solutions, 3D authoring tools and scanners, Bespoke Modeling, and TeamPlatform. It operates through the following... More
Industry: Application Software
Country: United States