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3D Systems misses Q1 estimates, shares fall 3%

EditorRachael Rajan
Published 21/08/2024, 06:40 am
© Reuters.
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NEW YORK - 3D Systems Corporation (NYSE:DDD) reported first quarter results that missed analyst expectations, sending shares down 3% in after-hours trading.

The 3D printing company posted a wider-than-expected adjusted loss of $0.17 per share, compared to analyst estimates of a $0.07 per share loss. Revenue fell 15.1% year-over-year to $102.9 million, below the $109.39 million consensus forecast.

3D Systems cited macroeconomic headwinds and lower printer sales for the revenue decline. Healthcare Solutions revenue decreased 6.8% to $45.4 million, while Industrial Solutions revenue dropped 20.7% to $57.5 million.

"Our first quarter revenue results reflect a continuation of pressures driven by unfavorable macroeconomic and geopolitical conditions, which were particularly impactful on hardware printer sales that are directly tied to customer capex investments," said CEO Dr. Jeffrey Graves.

The company expects second quarter revenues between $113.0 million and $113.5 million.

Gross profit margin improved slightly to 39.8% from 38.8% last year, helped by favorable product mix. However, operating expenses rose due to higher audit and service fees related to the delayed 2023 annual report filing.

3D Systems ended the quarter with $212.0 million in cash and cash equivalents, down from $331.5 million at the end of 2023. The decrease was primarily due to debt repurchases and cash used in operations.

Despite the earnings miss, management expressed confidence that top-line performance will improve as 2024 progresses, citing encouraging signs in certain markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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