Why Shareholders Should Be Angry With Both 3D Systems and Wall Street
In the following video, Motley Fool industrials analyst Blake Bos takes a look at why there was so much confusion around 3D Systems' earnings report. Whereas the press release stated EPS of $0.71 per share, this was prior to the split that the stock underwent Friday afternoon, and led to a lot of analyst and investor misinterpretation. The company's share count also increased by approximately 9 million shares, diluting shareholder returns. Blake tells us in the video what the actual earnings per share value is, and gives investors a much more meaningful way to calculate a company's earnings. He also tells us why diversification in 3-D printing investing is important.
3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.
The article Why Shareholders Should Be Angry With Both 3D Systems and Wall Street originally appeared on Fool.com.
Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 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.Editor's note: To clarify the disclosure position outlined above, The Motley Fool owns shares of 3D Systems through both our Supernova and Pro real-money premium services. In addition to the shares it owns, our Pro premium service has written a "covered strangle" options position on 3D Systems, agreeing when the trade was set up to buy more shares at a lower price, or to sell existing shares at a higher price - while maintaining the ability to close either obligation any time. Finally, 3D Systems is a recommendation in Stock Advisor, which is not a real-money service.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
