Shares of three-dimensional (3D) printing solutions provider 3D Systems Corp. (DDD) slipped 11.8% in the after-hours trading session on Monday, even though the company reported strong financial results for the third quarter of 2021.
Headquartered in South Carolina, 3D Systems engineers, manufactures and sells 3D scanners, 3D printers, 3D printing materials. It also provides 3D printing services.
Q3 Results
The company reported earnings of $0.08 per share, beating the Street’s estimate of $0.05 per share. 3D Systems had recorded a loss of $0.03 per share in the third quarter of last year.
Revenue increased 14.6% year-over-year to $156.1 million, surpassing analysts’ expectations of $144.76 million.
The industrial segment’s revenues grew 4% to $79.7 million, and the Healthcare segment generated revenues of $76.4 million, up 28.3% year-over-year.
Adjusted gross profit margin stood at 41.2%, down from 43.1% in the previous year, primarily because of businesses divested in 2020 and 2021.
3D Systems ended the quarter with $502.8 million of cash and no debt. (See Insiders’ Hot Stocks on TipRanks)
CEO Comments
Commenting on the results, the President and CEO of 3D Systems, Jeffrey Graves said, “We will continue to focus investment in areas that we believe solve customers’ complex needs, drive adoption of additive manufacturing, and generate high margin, recurring revenue streams.”
Outlook
The company expects adjusted gross profit margin to range between 41% and 43% in 2021.
Analyst Recommendation
Overall, the stock has a Hold consensus rating based on 1 Buy, 5 Holds and 2 Sells. The average 3D Systems price target of $29.86 implies nearly 12% downside potential. Shares have gained 393.2% over the past year.
Risk Analysis
According to TipRanks’ Risk Factors tool, 3D Systems is at risk mainly from one factor: Finance & Corporate, which accounts for 38% of the total 21 risks identified for the stock. Under the Finance & Corporate risk category, the company has eight risks, details of which can be found on the TipRanks website.
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