We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3D Systems' (DDD) Q3 Loss Narrower Than Expected, Sales Miss
Read MoreHide Full Article
3D Systems (DDD - Free Report) reported a third-quarter 2022 non-GAAP loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 9 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of 8 cents per share.
In the third quarter of 2022, 3D Systems reported revenues of $132.3 million, down 15.3% from the year-ago quarter and 5.5% from the previous quarter. Excluding the impact of business divestments in 2022 and on a constant currency basis, revenues increased 2.7% year over year. The top line lagged the consensus mark of $137.4 million for the third consecutive quarter.
3D Systems’ third-quarter performance reflected impacts of inflationary pressure, foreign exchange risks and supply chain disruptions, among other ongoing macroeconomic constraints.
Shares of DDD have slumped 73.3% in the past year.
3D Systems Corporation Price, Consensus and EPS Surprise
In the third quarter, product revenues represented 72.8% of the total revenues and decreased 11.6% to $96.3 million. Revenues from Services, which accounted for 27.1% of revenues, plunged 23.9% year over year to $35.9 million.
Revenues from the Healthcare segment fell 16% year over year to $64.2 million. The figure decreased 10.5% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues decreased 3.5% year over year.
The Industrial Division revenues decreased 14.6% year over year to $68.1 million and 0.3% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 9%. The company witnessed solid demand for products, as well as materials.
Operating Details
During the third quarter of 2022, 3D Systems’ non-GAAP gross profit decreased 4.5% year over year to $52.8 million. Consequently, the non-GAAP gross profit margin contracted 60 basis points (bps) to 39.9%. This decrease was driven by year-over-year product mix changes, due to divestitures and increased supply chain disruptions.
Non-GAAP operating expenses increased 18.3% to $58.3 million. The increase was due to spending related to future growth, which includes expenses from acquisitions, research and development, and corporate infrastructure.
Non-GAAP operating loss was $5.5 million compared with the year-ago operating income of $6 million.
Adjusted EBITDA was negative $0.3 million. The margin of negative 0.2% reflected the inflationary impact on input costs and gradual investments for portfolio & business growth.
Balance Sheet Details
The company exited the third quarter with cash, cash equivalents and short-term investments of $609.4 million, lower than the prior quarter's $638.2 million. As of Sep 30, 2022, 3D Systems had a total debt of $448.9 million, slightly up from the previous quarter’s $448.1 million.
In the first nine months of 2022, the company utilized $52.4 million of cash from operational activities.
Guidance
3D Systems trimmed its full-year 2022 guidance for the third time. The company now expects revenues between $535 million and $545 million compared with the previously expected band of $530-$570 million. The company still projects non-GAAP gross margin to be 39-41%.
Non-GAAP operating expense is estimated to be $240-$245 million, decreasing the lower end from the earlier projection of $245-$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 #4 (Sell).
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 15 cents to $1.18 per share in the past 60 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 66% in the past year.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have declined 4.3% in the past year.
The Zacks Consensus Estimate for Okta's third-quarter fiscal 2023 loss has been revised 3 cents northward to 24 cents per share over the past 90 days. For fiscal 2023, loss estimates have improved by 3 cents to 72 cents per share in the past 60 days.
OKTA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 45.5%. Shares of the company have plunged 82.2% in the past year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
3D Systems' (DDD) Q3 Loss Narrower Than Expected, Sales Miss
3D Systems (DDD - Free Report) reported a third-quarter 2022 non-GAAP loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 9 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of 8 cents per share.
In the third quarter of 2022, 3D Systems reported revenues of $132.3 million, down 15.3% from the year-ago quarter and 5.5% from the previous quarter. Excluding the impact of business divestments in 2022 and on a constant currency basis, revenues increased 2.7% year over year. The top line lagged the consensus mark of $137.4 million for the third consecutive quarter.
3D Systems’ third-quarter performance reflected impacts of inflationary pressure, foreign exchange risks and supply chain disruptions, among other ongoing macroeconomic constraints.
Shares of DDD have slumped 73.3% in the past year.
3D Systems Corporation Price, Consensus and EPS Surprise
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
Quarter in Detail
In the third quarter, product revenues represented 72.8% of the total revenues and decreased 11.6% to $96.3 million. Revenues from Services, which accounted for 27.1% of revenues, plunged 23.9% year over year to $35.9 million.
Revenues from the Healthcare segment fell 16% year over year to $64.2 million. The figure decreased 10.5% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues decreased 3.5% year over year.
The Industrial Division revenues decreased 14.6% year over year to $68.1 million and 0.3% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 9%. The company witnessed solid demand for products, as well as materials.
Operating Details
During the third quarter of 2022, 3D Systems’ non-GAAP gross profit decreased 4.5% year over year to $52.8 million. Consequently, the non-GAAP gross profit margin contracted 60 basis points (bps) to 39.9%. This decrease was driven by year-over-year product mix changes, due to divestitures and increased supply chain disruptions.
Non-GAAP operating expenses increased 18.3% to $58.3 million. The increase was due to spending related to future growth, which includes expenses from acquisitions, research and development, and corporate infrastructure.
Non-GAAP operating loss was $5.5 million compared with the year-ago operating income of $6 million.
Adjusted EBITDA was negative $0.3 million. The margin of negative 0.2% reflected the inflationary impact on input costs and gradual investments for portfolio & business growth.
Balance Sheet Details
The company exited the third quarter with cash, cash equivalents and short-term investments of $609.4 million, lower than the prior quarter's $638.2 million. As of Sep 30, 2022, 3D Systems had a total debt of $448.9 million, slightly up from the previous quarter’s $448.1 million.
In the first nine months of 2022, the company utilized $52.4 million of cash from operational activities.
Guidance
3D Systems trimmed its full-year 2022 guidance for the third time. The company now expects revenues between $535 million and $545 million compared with the previously expected band of $530-$570 million. The company still projects non-GAAP gross margin to be 39-41%.
Non-GAAP operating expense is estimated to be $240-$245 million, decreasing the lower end from the earlier projection of $245-$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 #4 (Sell).
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Celestica (CLS - Free Report) and Okta (OKTA - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 15 cents to $1.18 per share in the past 60 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 66% in the past year.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have declined 4.3% in the past year.
The Zacks Consensus Estimate for Okta's third-quarter fiscal 2023 loss has been revised 3 cents northward to 24 cents per share over the past 90 days. For fiscal 2023, loss estimates have improved by 3 cents to 72 cents per share in the past 60 days.
OKTA’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 45.5%. Shares of the company have plunged 82.2% in the past year.