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3D Systems (DDD) Up 59.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 59.9% 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 Incurs Loss in Q3, Revenues Beat Estimates
3D Systems 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 100% due to these changes.
VGM Scores
At this time, 3D Systems has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise 3D Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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3D Systems (DDD) Up 59.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 59.9% 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 Incurs Loss in Q3, Revenues Beat Estimates
3D Systems 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 100% due to these changes.
VGM Scores
At this time, 3D Systems has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise 3D Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.