3D Systems’ Q4 Results Beat Estimates; Shares Gain 11% Pre-Market

3D Systems Corp. (DDD) has reported stronger-than-expected results for the fourth quarter of 2021. Shares of the three-dimensional (3D) printing solutions provider gained 12.2% in Monday’s extended trading session and a further 10.7% at the time of writing.

Headquartered in South Carolina, 3D Systems engineers, manufactures and sells 3D scanners, 3D printers and 3D printing materials. It also provides 3D printing services.

Q4 Results

3D Systems reported earnings of $0.09 per share, which remained stable year-over-year and surpassed the Street’s estimate of $0.04 per share. Revenue decreased 12.6% year-over-year to $150.9 million but came above analysts’ expectations of $144.2 million.

Segment-wise, the industrial unit’s revenues fell 12.3% to $76.4 million, and the Healthcare segment generated revenues of $74.5 million, down 12.9% year-over-year.

Adjusted gross profit margin stood at 44.1%, up from 42.9% in the previous year, primarily because of better absorption of supply chain overhead resulting from higher production combined with strong inventory management, resulting in reduced obsolescence.

The President and CEO of 3D Systems, Jeffrey Graves, said, “As we enter 2022, there are clear challenges that all companies are facing – inflation, supply chain constraints, COVID-19 variants, and geopolitical instability – all of which may have an impact on the global economy and our results.”

“However, at 3D Systems we enter the new year with a great deal of optimism, confident that continued execution of our strategy to deliver essential solutions to our Healthcare and Industrial customers, while prudently increasing investment in our core technologies and infrastructure to meet our growing demand outlook, will accelerate adoption of additive manufacturing. We believe the result will be exciting, profitable growth, and the creation of meaningful shareholder value in the years ahead,” he added.

Outlook

3D Systems expects 2022 revenues to be within a range of $570 million and $630 million. The company projects adjusted gross profit margin to range between 40% and 44%. Operating expenses on an adjusted basis are anticipated between $225 million and $250 million.

Price Target

Overall, the stock has a Hold consensus rating based on 2 Holds. The 3D Systems stock price prediction of $24 implies 34.5% upside potential. Shares have gained 54.1% over the past year.

Negative Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on 3D Systems, as 12.6% of investors on TipRanks decreased their exposure to DDD stock over the past 30 days.

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