Why Is 3D Systems (DDD) Up 20.7% Since Last Earnings Report?

It has been about a month since the last earnings report for 3D Systems (DDD). Shares have added about 20.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. 3D Systems Posts Loss in Q3, Revenues Down Y/Y3D Systems reported a non-GAAP loss of 12 cents per share in third-quarter 2024, wider than the Zacks Consensus Estimate of a loss of 9 cents. The bottom-line results also compared unfavorably with the year-ago quarter’s earnings of a penny.DDD reported revenues of $112.9 million for the third quarter of 2024, down 8.8% year over year. The top line also missed the Zacks Consensus Estimate of $120 million.The decline was primarily attributed to reduced printer sales, led by macroeconomic challenges impacting hardware demand. However, this was partially offset by growth in consumables sales.Product revenues declined 9.3% year over year to $73 million in the third quarter, contributing 64.6% to total revenues.Services revenues, which accounted for 35.4% of total revenues, declined 7.8% year over year to $40 million.DDD’s Quarterly DetailsBased on the industry verticals it serves; the company operates through two reportable segments — Healthcare Solutions and Industrial Solutions. Healthcare Solutions encompasses dental, medical devices, personalized health services and regenerative medicine, whereas Industrial Solutions covers aerospace, defense, transportation and general manufacturing.In the third quarter, Healthcare revenues rose 5% year over year to $55.1 million, led by strong growth in Dental and Personalized Healthcare solutions.  The Industrial Division’s revenues fell 18.9% year over year to $57.9 million. However, customer interest in 3D printing applications has continued to gain momentum, with revenues in the Application Innovation Group growing 26% year over year, particularly across the industrial markets.3D Systems’ non-GAAP gross profit fell 23.4% year over year to $42.5 million. The non-GAAP gross profit margin declined 720 basis points to 37.6% due to unfavorable absorption associated with lower volumes and higher inventory reserve provisions.Adjusted EBITDA fell $19.1 million year over year to a loss of $14.3 million in the third quarter. The downside in adjusted EBITDA primarily reflects decreased revenues, a lower gross margin and increased operating expenses.3D Systems’ Balance SheetAs of Sept. 30, 2024, cash and cash equivalents were $190 million, lower than $192.7 million as of June 30, 2024.As of Sept. 30, 2024, DDD had a total debt of $211.7 million, up from $211.4 million as of June 30, 2024.DDD’s 2024 GuidanceFor 2024, the company expects revenues between $440 million and $450 million.The non-GAAP gross profit margin for 2024 is likely to be 38-40%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -40.91% due to these changes.VGM ScoresAt this time, 3D Systems has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise 3D Systems has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3D Systems Corporation (DDD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks