Feb.6, 2014

3D printing giant 3D Systems released its preliminary 2013 full-year results and issued 2014 full-year guidance yesterday, reviving fears of a bubble in the 3D printing industry and sending its shares down as much as 28 percent. The news also brought down Stratasys as much as 13%, ExOne down as much as 15%, and voxeljet down as much as 14%.

3D Systems cut its 2013 adjusted profit estimate to 83-87 cents per share from 93 cents-$1.03, citing higher spending on R&D, sales and marketing expenses, along with generally higher costs related to making acquisitions. Prior to its announcement, analysts were expecting 3D Systems to earn $1.27 a share.

The company also forecast adjusted earnings for 2014 below the average analyst estimate.

Management continues to balance its focus on growth with emphasis on long-term profitability, but given the near term opportunities, is choosing to prioritize growth because it believes that scale is central to achieving the full potential of its business model, 3D Systems said in the statement.

3D printing companies are making aggressive investments, making investors concerned about profitability but that doesn't mean that the growth or demand of 3D printing is falling, Gabelli & Co analyst Hendi Susanto told Reuters.

"We are willing to tolerate earnings reduction and even slight gross profit margin compression during this period to substantially accelerate our growth rate and market share," Chief Executive Officer Avi Reichental said.

3D Systems said compared to its expectations, the company experienced much stronger professional 3D printers and materials demand and softer on-demand parts and consumer demand during the fourth quarter. "They are too expensive," said William Blair analyst Brian Drab of consumer 3-D printers, noting the excitement about the consumer opportunity appears to be overdone.

As for 2014, 3D Systems said it expects adjusted earnings of 73 cents to 85 cents a share on revenue of $680 million to $720 million.

Posted in 3D Printing Company



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jd90 wrote at 2/6/2014 5:44:04 PM:

Yeah, I'm not fond of the economics or the software of the Cube system. 3D printing has gotten to be a buzzword, where even things that weren't 3D printed get press releases that say 3D printing and many sites, even this one, pick it up and run with it without running it through a BS detector. Remember the "3D printed" disposable panties?

3dbleh wrote at 2/6/2014 4:47:29 PM:

@Inetxap Easy to fix? Their business model is no longer competitive at the low end and that will change on the medium and high end eventually. As patents open up and competition increases, the giants of today will lose more and more market share.

Initxap wrote at 2/6/2014 12:55:36 PM:

No surprise. Their consumer products have a terrible reputation. Add to that their propriatery filament format. Well their stock holders can be re-assured that these problems are relatively easy to fix if they are willing to listen to their customers.

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