3D Systems (DDD - Free Report) reported third-quarter 2020 non-GAAP loss of 3 cents per share, beating the Zacks Consensus Estimate by 62.5%. Moreover, the bottom line was narrower than the year-ago quarter’s loss of 4 cents per share.Revenues of $135.1 million beat the consensus mark by 16.6% but declined 13% year over year.
Revenues from products division (57.2% of revenues) declined 18.2% year over year to $77.3 million. Services revenues (42.8% of revenues) fell 4.7% from the year-ago quarter to $57.9 million.
Quarterly Details
Healthcare segment revenues increased 6.1% year over year to $59.8 million. Robust dental end-market drove top-line growth.Industrial division revenues plunged 23.8% year over year to $75.3 million.
In the reported quarter, non-GAAP gross margin contracted 90 basis points (bps) year over year to 43.5%. Products gross margin decreased primarily due to the under-absorption of supply chain overhead, resulting from lower production. However, services gross profit margin improved.In the third quarter, 3D Systems’ non-GAAP operating expenses dropped 15.2% year over year to $58.8 million. This year-over-year decline was primarily driven by savings achieved from cost restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic.
Selling, general and administrative expenses as a percentage of revenues increased 620 bps to 43.7%. Research & development expense as a percentage of revenues increased 50 bps to 14%.
Balance Sheet Details
As of Sep 30, 2020, 3D Systems had cash and cash equivalents of $75.3 million compared with the $63.9 million recorded at the end of the previous quarter.3D Systems had unused revolving credit facility worth $100 million with roughly $30.6 million available currently.
Total debt was $21.7 million as of Sep 30, 2020.
Moreover, under its at-the-market equity program (ATM program), the company issued $25 million of common stock during the reported quarter. Notably, $125 million is currently available under the ATM program.
Zacks Rank and Stocks to Consider
Currently, 3D Systems carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader technology sector are CMC Materials , Covetrus and NVIDIA (NVDA - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covetrus and CMC Materials are set to report their quarterly earnings on Nov 10 and 11, respectively. NVIDIA is set scheduled to report the same on Nov 18.
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3D Systems (DDD - Free Report) reported third-quarter 2020 non-GAAP loss of 3 cents per share, beating the Zacks Consensus Estimate by 62.5%. Moreover, the bottom line was narrower than the year-ago quarter’s loss of 4 cents per share.
Revenues of $135.1 million beat the consensus mark by 16.6% but declined 13% year over year.
Revenues from products division (57.2% of revenues) declined 18.2% year over year to $77.3 million. Services revenues (42.8% of revenues) fell 4.7% from the year-ago quarter to $57.9 million.
Quarterly Details
Healthcare segment revenues increased 6.1% year over year to $59.8 million. Robust dental end-market drove top-line growth.
Industrial division revenues plunged 23.8% year over year to $75.3 million.
In the reported quarter, non-GAAP gross margin contracted 90 basis points (bps) year over year to 43.5%. Products gross margin decreased primarily due to the under-absorption of supply chain overhead, resulting from lower production. However, services gross profit margin improved.
In the third quarter, 3D Systems’ non-GAAP operating expenses dropped 15.2% year over year to $58.8 million. This year-over-year decline was primarily driven by savings achieved from cost restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic.
Selling, general and administrative expenses as a percentage of revenues increased 620 bps to 43.7%. Research & development expense as a percentage of revenues increased 50 bps to 14%.
Balance Sheet Details
As of Sep 30, 2020, 3D Systems had cash and cash equivalents of $75.3 million compared with the $63.9 million recorded at the end of the previous quarter.
3D Systems had unused revolving credit facility worth $100 million with roughly $30.6 million available currently.
Total debt was $21.7 million as of Sep 30, 2020.
Moreover, under its at-the-market equity program (ATM program), the company issued $25 million of common stock during the reported quarter. Notably, $125 million is currently available under the ATM program.
Zacks Rank and Stocks to Consider
Currently, 3D Systems carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are CMC Materials , Covetrus and NVIDIA (NVDA - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covetrus and CMC Materials are set to report their quarterly earnings on Nov 10 and 11, respectively. NVIDIA is set scheduled to report the same on Nov 18.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favoritestock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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