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3D Systems (DDD) Earnings & Revenues Beat Estimates in Q2
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3D Systems Corporation (DDD - Free Report) reported strong second-quarter 2021 results, wherein both earnings and revenues not only surpassed the respective Zacks Consensus Estimate but also improved significantly year over year.
The company reported non-GAAP earnings of 12 cents per share beating the consensus mark of 5 cents per share. The bottom line compared favorably with the year-ago quarter’s loss of 13 cents per share. Strong bottom-line performance was mainly driven by higher revenues and cost savings achieved from restructuring initiatives.
In the second quarter of 2021, the company reported revenues of $162.6 million, up 44.1% from the year-ago quarter and 11.3% from the previous quarter. Excluding the impact of business divestments in 2020 and 2021, revenues surged 59.3% year on year.
The top line outpaced the consensus mark of $141.9 million. The year-over-year increase in top-line results reflected acceleration beyond pre-pandemic performance levels.
3D Systems Corporation Price, Consensus and EPS Surprise
Continued strength in the Healthcare segment and increased demand from Industrial customers were the key drivers of 3D Systems’ second-quarter performance.
Product revenues, representing 66.8% of the total revenues, were $108.6 million, were up a whopping 74.6% year over year. Meanwhile, revenues from services accounted for 33.2% of revenues. The figure improved 6.5% year over year.
Quarterly Details
In the second quarter, revenues from the Healthcare segment increased 68.6% year over year to $82.8 million, and surged 14.2% compared with the previous quarter. Double-digit growth in medical applications and strong demand for dental materials aided this growth.
The industrial division revenues increased 25.3% year over year and 8.3% sequentially to $79.7 million. Excluding the impact of business divestments in 2020 and 2021, the unit’s revenues increased 49.6%. The company witnessed solid demand for products as well as materials.
Operating Details
During the second quarter of 2021, 3D Systems’ non-GAAP gross profit surged 49% year over year to $69 million. Non-GAAP gross profit margin expanded 140 basis points (bps) to 42.4%. However, gross margin contracted 140 bps quarter over quarter due to non-recurring write-downs related to equipment and inventory.
Non-GAAP operating expenses were $55.2 million, down 3.3% from the year-earlier quarter. This decline in non-GAAP operating expenses resulted from savings achieved from cost restructuring activities, offset by spending in targeted areas for future growth.
Balance Sheet Details
The global leader in additive manufacturing solutions closed the second quarter with cash and cash equivalents of $131.8 million, down from the prior quarter’s $133 million. As of Jun 30, 2021, the company held no debt, indicating a strong balance sheet for strategic investments.
3D Systems had an unused revolving credit facility worth $100 million, with full availability at present. It generated $42.0 million of cash from operating activities during the first half of 2021.
Zacks Rank and Key Picks
3D Systems currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector include:
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3D Systems (DDD) Earnings & Revenues Beat Estimates in Q2
3D Systems Corporation (DDD - Free Report) reported strong second-quarter 2021 results, wherein both earnings and revenues not only surpassed the respective Zacks Consensus Estimate but also improved significantly year over year.
The company reported non-GAAP earnings of 12 cents per share beating the consensus mark of 5 cents per share. The bottom line compared favorably with the year-ago quarter’s loss of 13 cents per share. Strong bottom-line performance was mainly driven by higher revenues and cost savings achieved from restructuring initiatives.
In the second quarter of 2021, the company reported revenues of $162.6 million, up 44.1% from the year-ago quarter and 11.3% from the previous quarter. Excluding the impact of business divestments in 2020 and 2021, revenues surged 59.3% year on year.
The top line outpaced the consensus mark of $141.9 million. The year-over-year increase in top-line results reflected acceleration beyond pre-pandemic performance levels.
3D Systems Corporation Price, Consensus and EPS Surprise
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
Continued strength in the Healthcare segment and increased demand from Industrial customers were the key drivers of 3D Systems’ second-quarter performance.
Product revenues, representing 66.8% of the total revenues, were $108.6 million, were up a whopping 74.6% year over year. Meanwhile, revenues from services accounted for 33.2% of revenues. The figure improved 6.5% year over year.
Quarterly Details
In the second quarter, revenues from the Healthcare segment increased 68.6% year over year to $82.8 million, and surged 14.2% compared with the previous quarter. Double-digit growth in medical applications and strong demand for dental materials aided this growth.
The industrial division revenues increased 25.3% year over year and 8.3% sequentially to $79.7 million. Excluding the impact of business divestments in 2020 and 2021, the unit’s revenues increased 49.6%. The company witnessed solid demand for products as well as materials.
Operating Details
During the second quarter of 2021, 3D Systems’ non-GAAP gross profit surged 49% year over year to $69 million. Non-GAAP gross profit margin expanded 140 basis points (bps) to 42.4%. However, gross margin contracted 140 bps quarter over quarter due to non-recurring write-downs related to equipment and inventory.
Non-GAAP operating expenses were $55.2 million, down 3.3% from the year-earlier quarter. This decline in non-GAAP operating expenses resulted from savings achieved from cost restructuring activities, offset by spending in targeted areas for future growth.
Balance Sheet Details
The global leader in additive manufacturing solutions closed the second quarter with cash and cash equivalents of $131.8 million, down from the prior quarter’s $133 million. As of Jun 30, 2021, the company held no debt, indicating a strong balance sheet for strategic investments.
3D Systems had an unused revolving credit facility worth $100 million, with full availability at present. It generated $42.0 million of cash from operating activities during the first half of 2021.
Zacks Rank and Key Picks
3D Systems currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector include:
Avnet, Inc. (AVT - Free Report) has Zacks Rank #1 (Strong-Buy) and a long-term earnings growth rate of 22.71%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices, Inc. (AMD - Free Report) has Zacks Rank #2 (Buy) and a long-term earnings growth rate of 44.6%.
EPAM Systems, Inc. (EPAM - Free Report) has Zacks Rank #2 and a long-term earnings growth rate of 22.89%.