As the main players in the 3D printing industry continue to struggle from a revenue and share price standpoint, investors and traders anxiously awaited 3D Systems’ (NYSE:DDD) first quarter, 2015 earnings report.
Just two weeks ago, the Rock Hill, North Carolina-based company warned the market, issuing a preliminary forecast for the quarter which strayed far from what analysts had been predicting at the time. This was then followed by Stratasys pulling a similar move only days later, causing many of the popular 3D printing related stocks to plummet over the following week.
Today’s report, which was announced moments ago, certainly could be an important piece to the 3D printing puzzle as investors gauge where the industry is headed next.
Reporting non-GAAP earnings per share of $0.05, which came in $0.01 above consensus estimates, 3D Systems realized revenue for the quarter in the amount of $160.7 million, up 8.7% from $147.7 million a year ago. The revenue figure came in a bit shy of consensus estimates of $161.78 million as macroeconomic factors came into play once again. The strength of the US dollar has apparently caused many of the company’s key clients to hold off on purchases, while demand for their products were weaker than expected so far this year. Additionally, internal issues related to performance of certain metal and nylon applications caused a delay in the availability of some of the company’s printers.
“We were surprised and disappointed by the abrupt interruption in customer demand late in the quarter from several economic factors that we believe caused many of our customers to defer their planned investments,” said Avi Reichental, President and Chief Executive Officer, 3DS. “However, we believe the fundamentals of our business model and the strength of our portfolio are intact, and we are encouraged to see certain OEMs resuming purchasing activities they deferred during the first quarter.”
It’s not all bad news, however, as growth within several key areas remains apparent:
- Overall consumer revenue grew by 65% as total machine sales rose 169%
- Driven by healthcare, services revenue increased by 31% when compared to last year’s Q1
- Revenue related to the sale of direct metal 3D printers increased by 39% while units sold rose by 46% when compared to Q1 of 2014
- Despite delayed purchases by some clients, healthcare revenue increased 38% year over year
- Q1 profit margin increased sequentially to 49.1%
“We are pleased that several of our categories and verticals continued to perform well, despite the acute investment pause by customers that we experienced towards the end of the first quarter,” explained Reichental.
The market seems to be viewing this latest report negatively as the stock is trading down 5% at the time this story was written. Are you a shareholder of 3D Systems’ stock? Let’s hear your thoughts on this latest report. Discuss in the 3D Systems Earnings forum thread on 3DPB.com