3D Systems Plunges on Fourth-Quarter Revenue Miss (Update 1)
NEW YORK (TheStreet) -- 3D Systems (DDD) shares plunged after the 3D printing company reported fourth-quarter results that missed Wall Street estimates.
The Rock Hill, S.C.-based company reported fourth-quarter earnings of 19 cents a share, or 39 cents a share excluding one-time items. Revenue for the quarter rose 45% year over year to $101.6 million. Analysts polled by Thomson Reuters were looking for 26 cents a share on revenue of $103.9 million.
"We are very pleased to report outstanding quarterly and annual results on accelerated printers' sales," said Avi Reichental, 3D Systems' president and CEO, in a press release. "We believe that our results reflect the potency of our diversified portfolio, productivity of our channels and effectiveness of our strategic growth initiatives."
There is intense speculation that 3D printing will eventually re-shape all of manufacturing. These companies sell printers, often costing thousands of dollars, making it possible for users to produce their own custom published products. Prospects that such innovations can bolster revenue at a time when the migration to smartphones and tablets has reduced the need for printers has prompted technology bellwethers such as HP (HPQ) to consider embracing 3D.
In addition to the weak fourth-quarter results, 3D offered 2013 guidance. The company said it expects non-GAAP earnings to be between $1 and $1.15 a share, with sales between $440 million and $485 million.
3D Systems recently announced a three-for-two stock split. The split occurred after the close of business on Feb. 15.
Prior to the results, shares of 3D Systems and its competitors were some of Wall Street's biggest darlings in 2012. Shares of 3D systems rose over 250% in 2012, while Stratsys (SSYS) rose more than 570% during the year.
Shares of 3D Systems were lower in Monday trading, off 6.6% to $35.46.
--Written by Chris Ciaccia in New York
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