Why 3D Systems Stock Withered This Week
Barely over a week after it released (very) delayed first-quarter results, 3D Systems (NYSE: DDD) went back to the printing presses to publish a new set of quarterlies. Investors weren't impressed with the 3D printing company's Q2, as the stock traded down by almost 19% over the course of this week, according to data compiled by S&P Global Market Intelligence.
Lower revenue, but narrower net loss
On Thursday, 3D Systems unveiled those Q2 figures. These revealed that the company's revenue slipped by 12% year over year to just over $113 million. Not surprisingly, this decline was due mainly to lower sales of printers, which in turn was because of one unnamed customer in the dental field that reduced its purchases of 3D Systems machines. This drop was offset to some degree by an increase in services revenue. However, this wasn't enough to halt the decline of the total.
On the bottom line, the generally accepted accounting principles (GAAP) net loss was $27.3 million, a slight improvement over the nearly $29 million shortfall of 2023's Q2. On a non-GAAP (adjusted), per-share basis, the company's net loss was $0.14.
This meant a double miss for 3D Systems, as analysts tracking the stock were modeling a higher revenue figure of $116.6 million and a much narrower adjusted-net loss of $0.05 per share.
Revenue guidance disappoints
3D Systems also updated its full-year 2024 guidance. The company now anticipates its revenue will come in at $450 million to $460 million. Yet even if it hit the top end of that range, the number would be lower than 2023's $488 million-plus. It's also some distance below the average analyst projection of $474 million.
The company added that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should land near break-even in Q4. It did not provide an annual forecast for the line item, nor did it proffer any bottom-line guidance.
Should you invest $1,000 in 3d Systems right now?
Before you buy stock in 3d Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and 3d Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $720,542!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of August 26, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends 3d Systems. The Motley Fool has a disclosure policy.
Why 3D Systems Stock Withered This Week was originally published by The Motley Fool