3D Systems Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

3D Systems (NYS: DDD) reported earnings on Feb. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), 3D Systems missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
 3D Systems logged revenue of $101.6 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $103.9 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $69.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.13 for Q4 were 18% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.19 for Q4 were 73% higher than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 51.7%, 470 basis points better than the prior-year quarter. Operating margin was 17.9%, 210 basis points worse than the prior-year quarter. Net margin was 10.7%, 80 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $98.9 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $445.9 million. The average EPS estimate is $0.81.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 3D Systems is outperform, with an average price target of $33.52.

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The article 3D Systems Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $55 Calls on 3D Systems and Short Jan 2014 $30 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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