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3D Systems (DDD) Earnings & Revenue Miss Estimates in Q1
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3D Systems (DDD - Free Report) reported first-quarter 2022 non-GAAP loss of 6 cents per share, missing the Zacks Consensus Estimate of break-even. The bottom line compared unfavorably with the prior-year quarter’s earnings of 17 cents per share.
In the first quarter of 2022, 3D Systems reported revenues of $133 million, down 9% from the year-ago quarter and 11.9% from the previous quarter. Excluding the impact of business divestments in 2021, revenues increased 10% year over year. The top line narrowly lagged the consensus mark of $133.7 million.
Quarter in Detail
In the first quarter, product revenues represented 75.6% of the total revenues and jumped 7.4% to $100.6 million. Meanwhile, revenues from Services, which accounted for 24.4% of revenues, plunged 38.2% year over year to $32.5 million.
3D Systems Corporation Price, Consensus and EPS Surprise
Revenues from the Healthcare segment fell 11.3% year over year to $64.3 million. The figure declined 13.7% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues increased 4.6% year over year.
The industrial division revenues decreased 6.6% year over year to $68.7 million and 10.1% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 15.7%. The company witnessed solid demand for products as well as materials.
Operating Details
During the first quarter of 2022, 3D Systems’ non-GAAP gross profit decreased 16.2% year over year to $53.9 million. Consequently, non-GAAP gross profit margin contracted 340 basis points (bps) to 40.6%. This decrease was driven by year-over-year product mix changes due to divestitures and increased supply chain disruptions.
Non-GAAP operating expenses increased 13% to $57.8 million. The increase was due to spending related to future growth, which includes expenses from acquisitions, research and development, and bad debt caused by heightened geopolitical events.
Non-GAAP operating loss was $3.9 million versus the year-ago operating income of $13.1 million.
Adjusted EBITDA was $1.9 million. The margin of 1.4% reflected a disciplined approach to growth, cost management and focus on core businesses.
Balance Sheet Details
The global leader in additive manufacturing solutions exited the first quarter with cash, cash equivalents and short-term investments of $745.6 million, lower than the prior-quarter’s $789.7 million. As of Mar 31, 2022, 3D Systems had a total debt of $447.5 million, down from the previous quarter’s $460 million.
During first-quarter 2022, the company utilized $15.1 million of operating cash flow.
Guidance
3D Systems trimmed its full-year 2022 guidance. The company now expects revenues between $580 million and $625 million, compared with the previously expected band of $570 million to $630 million. It now projects non-GAAP gross margin to be 40-43% rather than the previously estimated 40-44%.
Non-GAAP operating expense is estimated to be $235-$250 million, raising the lower end from the earlier projection of $225-$250 million.
Management provided this guidance with the assumption that the pandemic, supply chain disruptions or any geopolitical events will not be of any concern in 2022.
Zacks Rank & Key Picks
3D Systems currently carries a Zacks Rank #3 (Hold). Shares of DDD have declined 57.4% in the past year.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
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The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 41.6% in the past year.
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Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 1% in the past year.
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3D Systems (DDD) Earnings & Revenue Miss Estimates in Q1
3D Systems (DDD - Free Report) reported first-quarter 2022 non-GAAP loss of 6 cents per share, missing the Zacks Consensus Estimate of break-even. The bottom line compared unfavorably with the prior-year quarter’s earnings of 17 cents per share.
In the first quarter of 2022, 3D Systems reported revenues of $133 million, down 9% from the year-ago quarter and 11.9% from the previous quarter. Excluding the impact of business divestments in 2021, revenues increased 10% year over year. The top line narrowly lagged the consensus mark of $133.7 million.
Quarter in Detail
In the first quarter, product revenues represented 75.6% of the total revenues and jumped 7.4% to $100.6 million. Meanwhile, revenues from Services, which accounted for 24.4% of revenues, plunged 38.2% year over year to $32.5 million.
3D Systems Corporation Price, Consensus and EPS Surprise
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
Revenues from the Healthcare segment fell 11.3% year over year to $64.3 million. The figure declined 13.7% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues increased 4.6% year over year.
The industrial division revenues decreased 6.6% year over year to $68.7 million and 10.1% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 15.7%. The company witnessed solid demand for products as well as materials.
Operating Details
During the first quarter of 2022, 3D Systems’ non-GAAP gross profit decreased 16.2% year over year to $53.9 million. Consequently, non-GAAP gross profit margin contracted 340 basis points (bps) to 40.6%. This decrease was driven by year-over-year product mix changes due to divestitures and increased supply chain disruptions.
Non-GAAP operating expenses increased 13% to $57.8 million. The increase was due to spending related to future growth, which includes expenses from acquisitions, research and development, and bad debt caused by heightened geopolitical events.
Non-GAAP operating loss was $3.9 million versus the year-ago operating income of $13.1 million.
Adjusted EBITDA was $1.9 million. The margin of 1.4% reflected a disciplined approach to growth, cost management and focus on core businesses.
Balance Sheet Details
The global leader in additive manufacturing solutions exited the first quarter with cash, cash equivalents and short-term investments of $745.6 million, lower than the prior-quarter’s $789.7 million. As of Mar 31, 2022, 3D Systems had a total debt of $447.5 million, down from the previous quarter’s $460 million.
During first-quarter 2022, the company utilized $15.1 million of operating cash flow.
Guidance
3D Systems trimmed its full-year 2022 guidance. The company now expects revenues between $580 million and $625 million, compared with the previously expected band of $570 million to $630 million. It now projects non-GAAP gross margin to be 40-43% rather than the previously estimated 40-44%.
Non-GAAP operating expense is estimated to be $235-$250 million, raising the lower end from the earlier projection of $225-$250 million.
Management provided this guidance with the assumption that the pandemic, supply chain disruptions or any geopolitical events will not be of any concern in 2022.
Zacks Rank & Key Picks
3D Systems currently carries a Zacks Rank #3 (Hold). Shares of DDD have declined 57.4% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Axcelis Technologies (ACLS - Free Report) and Analog Devices (ADI - Free Report) . While Avnet and Axcelis sport a Zacks Rank #1 (Strong Buy), Analog Devices carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 9.5% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 41.6% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 1% in the past year.