logo
Share SHARE
FONT-SIZE Plus   Neg

3D Systems Profit Falls, But Tops Estimates; Provides Strong Outlook; Stock Up

3D Systems Corp. (DDD: Quote) Thursday reported a drop in fourth-quarter earnings as increased selling and other costs offset a 35 percent jump in revenue. But, excluding items, earnings rose from last year and topped analysts' estimates, as did revenue.

The Rock Hill, South Carolina-based maker of 3D printers and related products also provided a strong earnings outlook for the full year 2012, sending its shares up by 17 percent in morning trade on the New York Stock Exchange.

CEO Abe Reichental said that despite economic volatility and issues arising from its rapid expansion, the company is well placed to tap the opportunities in the manufacturing and emerging consumer markets.

During the fourth quarter 2011, all of the company's segments saw growth. Sales of 3D printer nearly tripled from last year, but accounted for only a slight rise in revenue due to the shift towards lower price products. Meanwhile, print materials segment rose 21 percent, and service also posted robust growth.

Net income for the quarter fell to $8 million or $0.16 per share from $9.4 million or $0.20 per share a year ago. Excluding items, adjusted earnings was $13.8 million or $0.27 per share, compared to $9.6 million or $0.20 per share last year.

On average, five analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

The company's revenue grew to $70 million from $51.6 million last year. Analysts expected revenue of $63.66 million.

The company expects full year 2012 adjusted earnings of $1.00 to $1.25 per share and revenue of $330 million to $360 million. Analysts currently expect earnings of $0.80 per share and revenue of $291.87 million for the full year 2012.

Last month, 3D Systems completed the acquisition of Z Corp. and Vidar Systems for $135.5 million from Contex Group, a subsidiary of Ratos AB, a private equity company located in Stockholm, Sweden. The deal is expected to be immediately accretive to the company's adjusted earnings in the first full year following closure.

DDD is trading at $24.59, up $3.66 or 17.49%, on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Gas explosion in Fresno in California injured 11 people on Friday afternoon. Pacific Gas and Electric Co. (PG&E) said workers who are not affiliated with the company have struck a 12-inch natural gas transmission pipeline and the gas leaked was ignited due to the dig-in. Verizon Communications' FiOS TV service has modified its programming bundles and will now offer new packages so that users can subscribe only for channels they prefer to watch. Instagram, the photo sharing app owned by Facebook, has updated its community guidelines to disallow nudity and harassment in uploaded photos and pictures, as well as cyber bullying.
comments powered by Disqus
Follow RTT