3D Systems reports Q1 EPS (17c), consensus (9c)

Reports Q1 revenue $102.91M, consensus $106.59M. Commenting on first quarter results, Jeffrey Graves, president and CEO of 3D Systems said, “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. As a whole, first quarter revenues were slightly below our initial expectations reflecting a soft start to the year, driven by normal seasonality, and compounded by continued scrutiny across customer capital expenditures for additive manufacturing systems. Given the timing of some significant machine purchases last year, our Industrial segment was most impacted by this unfavorable capital spend environment, as weakness in most sectors offset another strong performance from Aerospace and Defense customers. That said, interest in additive applications remains very robust and we are beginning to see signs of encouragement in certain demand markets giving us confidence that our top-line performance will notably improve as the year progresses. Materials and services, particularly in our Healthcare business, performed very well in the first quarter, leveraging the strength of our existing installed base. We view our multi-year contract award with a leading provider of clear dental aligners as a tremendous foundation for our dental initiatives to grow in the years ahead. Additionally, with the strength of our Personalized Healthcare business delivering another strong quarter of over 9% growth, and our intense focus to continue investing in the personalized space, we see significant opportunities to build on this momentum. Looking ahead, we are expecting second quarter revenues within the range of $113.0 – $113.5 million with continued sequential improvement throughout the balance of 2024.”