3D Systems Earnings Leave Expectations in the Dust

3D Systems Corp. (NYSE: DDD) reported fourth-quarter and full-year 2015 results before markets opened Monday. For the quarter, the 3D printer maker reported adjusted diluted earnings per share (EPS) of $0.19 and $183.4 million in revenues. In the same period a year ago, 3D Systems reported EPS of $0.21 on revenue of $187.44 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.03 and $166.38 million in revenue.

For the full year, 3D Systems reported EPS of $0.27 and revenues of $666.16 million. That compared with 2014 EPS of $0.70 and revenues totaling $653.65 million. Analysts were looking for EPS of $0.11 and revenues of $646.55 million.

On a GAAP basis, the company posted a quarterly loss of $5.32 and a full-year loss of $5.85 per share. The company took a $537 million goodwill and intangibles impairment charge in the fourth quarter.

Short interest has been dropping in 3D Systems, falling by nearly 10 million shares over the past 12 months. The share price has added about 22% since late January, but the company’s stock has a long climb back to its peak of around $97 in December of 2013.
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The company’s interim president and CEO, Andrew Johnson, said:

While market conditions remain challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter. … We believe that by leveraging our domain expertise, partner and customer relationships and advanced technology we are well positioned to capitalize on meaningful opportunities in key verticals. We are continuing an extensive and comprehensive review of our business and strategy and taking steps to better prioritize our resources and focus our investments.

At the end of the third quarter the company said it had begun a search for a permanent CEO to replace Avi Reichental, who had resigned in late October.

Consensus first-quarter estimates call for EPS of $0.03 on revenues of $152.83 million. For the full year, analysts are looking for EPS of $0.26 on revenues of $653.79 million. The company did not provide guidance.

Excluding a charge related to retiring the 3D Cube consumer device and a shift away from the consumer market, the company’s gross margin dropped by 20 basis points to 47.7%, compared with the same quarter a year ago.

Shares of 3D Systems traded higher by more than 11% in Monday’s premarket, at $12.85 in a 52-week range of $6.00 to $32.88. Thomson Reuters had a consensus analyst price target of $11.48 before the results were announced.