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What: Shares of 3D Systems (NYS: DDD) dropped today by as much as 11% after the company reported earnings, but has recovered most of those losses.
So what: Revenue for the second quarter soared 52% up to $83.6 million, with non-GAAP earnings per share of $0.27. Sales fell slightly short of analyst expectations. The growth was primarily driven by a 112% increase in printer units sold, while its backlog increased on strong demand.
Now what: The company trades at a premium valuation so investors may have been expecting more and are disappointed that sales fell slightly short. Additionally, CEO Abe Reichental said the company faces lingering "economic uncertainties," but should still benefit from R&D spending by its customers. 3D Systems is reaffirming its full-year guidance, with revenue forecast to be between $330 million and $360 million and adjusted earnings per share of $1.00-$1.25.
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The article Why 3D Systems Dropped originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of 3D Systems. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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