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Why Is 3D Systems (DDD) Up 29.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 29.6% 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 Q1 Earnings Beat Estimates
3D Systems reported first-quarter 2021 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate of 3 cents. Moreover, the bottom line compares favorably with the year-ago quarter’s loss of 4 cents per share, mainly driven by higher revenues and cost savings achieved from restructuring initiatives.
Revenues grew 7.7% year over year to $146.1 million despite divestments of some business units in 2020 and 2021. Excluding the impact of divested businesses, the top line increased 16.6% year on year. Moreover, quarterly revenues beat the consensus mark of $134.7 million.
Solid performance of the Healthcare segment and continued stabilization at Industrial division primarily fueled the year-over-year increase in revenues.
Revenues from the products division (64% of revenues) rose 17.4% year over year to $93.6 million. Services revenues (36% of revenues) fell 6.1% from the year-ago quarter to $52.5 million.
Quarterly Details
The Healthcare segment revenues jumped 38.7% year over year to $72.5 million. Robust dental and medical application end markets aided this growth.
Industrial division revenues slid 11.7% year over year to $73.6 million. However, excluding the impact of divested businesses in 2020 and 2021, Industrial’s sales inched up 0.7%, reflecting continued stabilization at the division.
In the reported quarter, non-GAAP gross margin expended 130 basis points (bps) year over year to 44%.
During the first quarter, 3D Systems’ non-GAAP operating expenses dropped 18.7% year over year to $51.2 million. This year-over-year decline chiefly resulted from the savings achieved from the company’s cost-restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic.
Balance Sheet Details
As of Mar 31, 2021, 3D Systems had cash and cash equivalents of $133 million, up from the previous quarter’s $75 million. The company held no debt at the end of the quarter.
3D Systems had an unused revolving credit facility worth $100 million, with roughly $92 million currently available.
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 450% due to these changes.
VGM Scores
At this time, 3D Systems has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth 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 broadly 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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Why Is 3D Systems (DDD) Up 29.6% Since Last Earnings Report?
It has been about a month since the last earnings report for 3D Systems (DDD - Free Report) . Shares have added about 29.6% 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 Q1 Earnings Beat Estimates
3D Systems reported first-quarter 2021 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate of 3 cents. Moreover, the bottom line compares favorably with the year-ago quarter’s loss of 4 cents per share, mainly driven by higher revenues and cost savings achieved from restructuring initiatives.
Revenues grew 7.7% year over year to $146.1 million despite divestments of some business units in 2020 and 2021. Excluding the impact of divested businesses, the top line increased 16.6% year on year. Moreover, quarterly revenues beat the consensus mark of $134.7 million.
Solid performance of the Healthcare segment and continued stabilization at Industrial division primarily fueled the year-over-year increase in revenues.
Revenues from the products division (64% of revenues) rose 17.4% year over year to $93.6 million. Services revenues (36% of revenues) fell 6.1% from the year-ago quarter to $52.5 million.
Quarterly Details
The Healthcare segment revenues jumped 38.7% year over year to $72.5 million. Robust dental and medical application end markets aided this growth.
Industrial division revenues slid 11.7% year over year to $73.6 million. However, excluding the impact of divested businesses in 2020 and 2021, Industrial’s sales inched up 0.7%, reflecting continued stabilization at the division.
In the reported quarter, non-GAAP gross margin expended 130 basis points (bps) year over year to 44%.
During the first quarter, 3D Systems’ non-GAAP operating expenses dropped 18.7% year over year to $51.2 million. This year-over-year decline chiefly resulted from the savings achieved from the company’s cost-restructuring activities as well as reduced hiring and lower travel expenses due to the coronavirus pandemic.
Balance Sheet Details
As of Mar 31, 2021, 3D Systems had cash and cash equivalents of $133 million, up from the previous quarter’s $75 million. The company held no debt at the end of the quarter.
3D Systems had an unused revolving credit facility worth $100 million, with roughly $92 million currently available.
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 450% due to these changes.
VGM Scores
At this time, 3D Systems has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth 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 broadly 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.