3D Systems Splits, Reports Earnings, Shares Slide

The company filed its Form 10-K with the Securities and Exchange Commission this morning as well, reporting adjusted diluted earnings per share (EPS) for the full year of $1.25 (not split adjusted) on revenues of $353.63 million. In 2011, the company reported EPS of $0.81 on revenues of $230.42 million. The consensus estimate called for EPS of $1.23 on revenues of $353 million.

For the fourth quarter, 3D Systems reported adjusted diluted EPS of $0.39 on revenues of $101.6 million. The consensus estimate called for EPS of $0.38 on revenues of $103.86 million.

The company’s CEO said:

We are very pleased to report outstanding quarterly and annual results on accelerated printers’ sales. We believe that our results reflect the potency of our diversified portfolio, productivity of our channels and effectiveness of our strategic growth initiatives. … We entered 2013 with positive sales momentum shaped by increased demand from advanced manufacturing activities. While we may face lingering economic uncertainties in parts of the world, we expect to continue to benefit from robust R&D and manufacturing spending by our customers worldwide

3D printing has been the next big thing for about two years, and equipment makers 3D Systems, Stratasys Ltd. (NASDAQ: SSYS) and ExOne Co. (NASDAQ: XONE), as well as service provider Proto Labs Inc. (NYSE: PRLB), all trade at multiples of around 50 or more. (ExOne just came public and has no earnings so far.)

For 2013, 3D Systems is guiding revenue at $440 million to $485 million and adjusted EPS at $1.00 to $1.15 on a post-split basis. Consensus estimates called for EPS of $1.58 (not split adjusted) on revenues of $442.22 million.

Investors are wary this morning of the less-than-booming results. Yes, the company beat quarterly expectations, but the forecast does not exactly indicated the kind of growth that 3D Systems has seen. In each of the past two years, revenue has grown by around 50%. Current year revenue growth is forecast at about half that.

Shares are trading now at $33.15, down about 12.7% on a split-adjusted basis.