3D Systems to Power Printers with PTC's ThingWorx Platform
3D Systems Corporation DDD recently announced that it has chosen computer software and services provider, PTC Inc.’s PTC ThingWorx Platform, to enable its 3D printers to perform intelligent monitoring, remote service and maintenance.
This move builds on the previous successful collaboration between the companies, in which 3D Systems announced powering its 3D Sprint SDK printers with PTC’s Creo design software to enable seamless CAD-to-print functionality. It is a part of 3D System’s strategic step to fortify its ecosystem of software and hardware to make 3D production real.
The company believes that the robust ecosystem will help meet production needs of customers and create end-to-end manufacturing workflows. The company also expects the integration of ThingWorx Platform to allow its proprietary 3D printers to maximize printer availability and productivity.
Furthermore, leveraging on ThingWorx Platform, 3D Systems can obtain increased visibility into the service requirements of the printers, allow it to diagnose problems and service them. This will eventually help the company deliver necessary “machine uptime” required in production environments, thus allowing customers to gain distinct business advantage.
For quite some time now, 3D Systems sales have been hurting from waning demand for printers. During first-quarter 2017, lower printer sales continued to thwart top-line performance. For full-year 2016, total revenue from printers plunged 21% and the weaknesses are yet to subside fully. These products, applications and channels involve different gross profit margins that are vulnerable to substantial fluctuations depending upon the mix of product shipments.
Also, the Zacks Rank #4 (Sell) company has been struggling from broader market concerns. The industry is battling a widespread decline in demand for enterprise 3D printers over the past two years. Other headwinds, including economic slowdown, inflation, currency fluctuations and commodity prices vagaries, have also marred the performance of most players in the industry.
Despite these challenges, shares of 3D Systems have gained an admirable 68.6%, outperforming the Zacks categorized Computer-Mini industry’s average gain of 32.4%. It appears that investors remain bullish, despite the short-term headwinds. At the very least, the company seems favorably positioned to capitalize on the booming 3D printing industry, which presents a lucrative long-term growth opportunity.
As a matter of fact, the majority of 3D Systems customers are shifting from prototyping to “end-use production”, using 3D printing technology. This will likely unlock opportunities for the company to clients in their transformation. The company’s thriving healthcare business, fuelled by consistent demand for printers and materials for medical and dental customers, remains a strong growth driver.
Stocks to Consider
Better-ranked stocks in the same space include Applied Materials, Inc. AMAT and Ubiquiti Networks, Inc. UBNT. While Applied Materials sports a Zacks Rank #1 (Strong Buy), Ubiquiti Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
With four back-to-back beats, Applied Materials has an average positive surprise of 3.3% for the trailing four quarters.
Ubiquiti Networks has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 13.3%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Click for Free 3D Systems Corporation (DDD) Stock Analysis Report >>
Click for Free Ubiquiti Networks, Inc. (UBNT) Stock Analysis Report >>
Click for Free PTC Inc. (PTC) Stock Analysis Report >>
Click for Free Applied Materials, Inc. (AMAT) Stock Analysis Report >>
To read this article on Zacks.com click here.
Zacks Investment Research
