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3D Systems (DDD) Q4 Earnings Miss Estimates, Revenues Up Y/Y

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3D Systems (DDD - Free Report) reported fourth-quarter 2020 non-GAAP earnings of 9 cents per share, missing the Zacks Consensus Estimate by 18.18%. However, the bottom line was higher than the year-ago quarter’s earnings of 5 cents per share.

Revenues of $172.7 million beat the consensus mark of $171.7 million but increased 2.7% year over year.

Strong performance in the Healthcare segment drove the year-over-year rally.

Revenues from the products division (65.2% of revenues) rose 7.1% year over year to $112.6 million. Services revenues (34.8% of revenues) fell 4.8% from the year-ago quarter to $60.1 million.

3D Systems Corporation Price, Consensus and EPS Surprise

3D Systems Corporation Price, Consensus and EPS Surprise

3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote

Quarterly Details

Healthcare segment revenues jumped 48% year over year to $86.6 million. Robust dental and medical application end markets drove the growth.

Industrial division revenues plunged 21.6% year over year to $86 million, as demand is yet to fully recover from pandemic-induced disruptions.

In the reported quarter, non-GAAP gross margin contracted 140 basis points (bps) year over year to 42.9%.

In the fourth quarter, 3D Systems’ non-GAAP operating expenses dropped 15.8% year over year to $58 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.

Balance Sheet Details

As of Dec 31, 2020, 3D Systems had cash and cash equivalents of $75 million, flat sequentially.

3D Systems had an unused revolving credit facility worth $100 million, with roughly $62 million currently available.

Total debt was $21.4 million as of Dec 31, 2020.

Moreover, the company did not issue any shares under its at-the-market equity program (ATM program) during the reported quarter. The program has been terminated.

Zacks Rank and Stocks to Consider

Currently, 3D Systems carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader technology sector are Skyworks Solutions (SWKS - Free Report) , Zoom Video Communications (ZM - Free Report) and Shopify Inc. (SHOP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Skyworks Solutions, Zoom and Shopify are currently pegged at 18.98%, 25% and 32.5%, respectively.

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