Why 3D Systems Shares Plunged
Feb 25th 2013 1:44PM
Updated Feb 25th 2013 4:05PM
What: Shares of 3-D printer maker 3D Systems sank 12% today after its quarterly results and guidance disappointed Wall Street.
So what: The company's fourth-quarter adjusted profit of $0.39 easily topped estimates, but a top-line miss -- revenue of $101.6 million versus the consensus of $103.9 million -- coupled with full year 2013 EPS guidance range of $1.00-$1.15 that met estimates of $1.05 but didn't blow them out of the proverbial water. In fact, worries about overvaluation in the space even dragged down the stocks of Stratasys and ExOne , which fell as low as 10% and 6%, respectively.
Now what: Management now sees 2013 adjusted EPS of $1.00-$1.15 on revenue of $440 million-$485 million, versus the consensus of $1.06 and $445.9 million. "We entered 2013 with positive sales momentum shaped by increased demand from advanced manufacturing activities," said President and CEO Avi Reichental. "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." Given the stock's still lofty trailing 12 month P/E of around 50, however, I'd wait for even more of a pullback before buying into that bull talk.
Of course, this short article doesn't even come close to telling the entire story for 3D Systems. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.
Editor's note: A previous version of this article did not factor the recent stock split into the guidance estimate. The Motley Fool regrets the error.
The article Why 3D Systems Shares Plunged originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $55 Calls on 3D Systems and Short Jan 2014 $30 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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