3D Systems (DDD) Report Preliminary 3Q Results, Scrap 2023 View
3D Systems DDD reported weaker-than-expected preliminary results for third-quarter 2023. It now expects revenues between $123 million and $124 million, indicating a year-over-year decline between $9.3 million and $8.3 million, primarily due to softness in printer demand.
The company now expects 2023 revenues to be weaker than previously expected guidance, primarily due to challenging macroeconomic conditions. 3D Systems is scrapping its previously provided guidance for 2023. The company had projected revenues in the range of $525-$545 million.
The Zacks Consensus Estimate for 2023 is currently pegged at $524.69 million, suggesting a 2.48% year-over-year decline. The consensus mark for loss is pegged at 22 cents per share, unchanged in the past 30 days.
Meanwhile, 3D Systems aims to save $45 - $55 million annually by the end of 2024 through its recently announced expansion of the restructuring plan. Most of the cost will be incurred in the first quarter of 2024. The restructuring plan targets headcount reduction and trimming geographic locations in all functions across the company.
The 3D system is expected to report its third quarter financial results and provide insights into the restructuring initiative on Nov 8.
3D Systems Corporation Price and Consensus
3D Systems Corporation price-consensus-chart | 3D Systems Corporation Quote
What is in Store for DDD’s Shares in 2023?
DDD shares have declined 46.9% compared with the Zacks Computer & Technology sector’s increase of 30% year to date. The underperformance can be attributed to ongoing macroeconomic uncertainties and soft printer demand.
However, additive manufacturing is gaining traction amid this underperformance among larger industries seeking economically viable solutions. 3D Systems, recognizing its position as the largest additive manufacturing company, is actively pursuing scalability.
DDD is also entering into biotechnology, metal additive manufacturing and large-format pellet extrusion printing through partnerships with their adaptive, Oerlikon AM and SWANY Co. Ltd., respectively.
To further extend its regenerative medicine efforts, DDD has partnered with United Therapeutics UTHR. The companies aim to create highly intricate products, including 3D-printed lungs.
United Therapeutics, a public benefit corporation, is involved in pursuing organ manufacturing. Recently, UTHR successfully transplanted a genetically engineered heart, Xenoheart, into a living person.
3D Systems recently announced the successful use of its point-of-care technologies in producing a patient-specific 3D-printed cranial implant used in a cranioplasty at the University Hospital Basel.
In September, 3D Systems partnered with Klarity to extend the reach of its FDA-approved VSP Bolus solution, simplifying the patient experience and enhancing radiotherapy care across the United States and Canada through Klarity Prints.
Zacks Rank & Stocks to Consider
DDD currently has a Zacks Rank #3 (Hold).
NVIDIA NVDA and Dell Technologies DELL are some better-ranked stocks in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of NVDA and DELL have gained 185.9% and 64.9%, respectively, year to date.
The long-term earnings growth rate for NVIDIA and Dell Technologies are pegged at 13.5% and 12%, respectively.
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