Shares of 3D Systems plunged more than 7% in extended trading on Wednesday after the 3D printing solution provider reported a wider-than-expected 2Q loss. Lower demand across all products due to COVID-19 pandemic-led shutdowns and reduced level of business activities hurt the company’s overall 2Q results.
3D Systems (DDD) reported a loss per share of $0.13, wider than analysts’ expectations of a loss of $0.10 per share. Revenues fell 28.7% to $112.1 million year-on-year and missed the Street estimate of $117.9 million.
On July 16, B. Riley FBR analyst Sarkis Sherbetchyan resumed 3D coverage with a Hold rating and price target of $8 (13.3% upside potential). Sherbetchyan is optimistic about the long-term growth prospects of the company as well as the adoption of additive manufacturing in industrial production environments.
However, he had cautioned that “Q2 could represent the weakest quarter in fiscal 2020 for industrial activity, and believes both 3D and ExOne should demonstrate improved operating performance in the second half of 2020 relative to Q2.”