3D Systems (DDD) Q3 Earnings Beat Estimates, Revenues Miss
3D Systems DDD reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 5 cents per share in the year-ago quarter.
The company reported revenues of $123.8 million, which declined 6.4% year over year and lagged the consensus mark by 0.07%.
In the third quarter, Product revenues represented 42.4% of total revenues and decreased 18.3% to $80.4 million. The figure lagged the Zacks Consensus Estimate by 2.05%.
Services revenues, which accounted for the remaining 35% of revenues, jumped 20.8% year over year to $43.4 million. The figure beat the consensus mark by 4.27%.
3D Systems Corporation Price, Consensus and EPS Surprise
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
Quarter Details
In the third quarter, on the basis of market type, Healthcare revenues fell 18.3% year over year to $52.4 million. On a constant-currency basis, the segment’s revenues plunged 19.5% year over year, mainly due to continued softness across the dental orthodontic market.
The Industrial Division’s revenues increased 4.9% year over year to $71.4 million. On a constant-currency basis, the segment’s revenues increased 1.8%.
3D Systems’ non-GAAP gross profit increased 5% year over year to $55.5 million. The non-GAAP gross profit margin expanded 490 basis points to 44.8%, primarily driven by improved operational efficiencies and a favorable mix.
Adjusted EBITDA was $4.7 million against negative adjusted EBITDA of $0.3 million, benefiting from improved operational efficiencies, favorable mix and lower incentive compensation expense.
Balance Sheet
As of Sep 30, 2023, cash, cash equivalents and short-term investments were $445.6 million, lower than $491.6 million as of Jun 30.
As of Sep 30, 2023, 3D Systems had a total debt of $451.5 million, slightly up from $450.8 million as of Jun 30.
Restructuring Details
3D Systems announced a restructuring initiative in October 2023 that is expected to deliver incremental cost savings of $45 - $55 million by the end of 2024.
It plans to release 39 new printer systems in 2024.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
NetEase NTES, NVIDIA NVDA and Model N MODN are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase shares have gained 54.8% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
NVIDIA shares have returned 216.8% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.
Model N shares have declined 38.9% year to date. MODN is set to report its fourth-quarter fiscal 2023 results on Nov 9.
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