3D SystemsDDD recently announced that its Figure 4 Standalone 3D printer has been instrumental in doubling the Oklahoma-based disabled veteran additive manufacturing firm Rapid Application Group’s production capacity and throughput.
The device, designed for functional prototyping and low volume production, is helping Rapid Application Group support “mission critical, time-sensitive operations” for customers in the oil and gas, aerospace and defense, motor sports and healthcare sectors.
Ever since adopting this solution in August this year, apart from multiplying the capacity, the same has helped reducing its time-to-print process by nearly 90% from seven hours to 45 minutes or less.
Moreover, Rapid Application group is further partnering with 3D Systems for using its newly launched ProJet MJP 2500 IC printers. This new 3D printing technology is designed for customized metal bridge manufacturing and low volume production of metal cast components.
The owner and CEO of Rapid Application Group, Terry Hill, was quoted saying, “The Figure 4 Standalone – including 3D Sprint – truly delivers as promised with outstanding ease-of-use, six sigma repeatability of production parts, and incredible speed."
Solid Portfolio Fuels Growth
3D Systems has been gaining traction from a positive reception of new products. In the last reported quarter, management mentioned that response and performance of the SLS 6100, FabPro 1000, NextDent 5100, Standalone Figure 4 and MJP 2500 investment casting were an upside for the company.
Earlier this year, the company unveiled four new materials optimized for producing precision metal parts. Also, it has begun bundling the innovative 3DXpert software with all direct metal printers.
Management believes that metal technology and Figure 4 combined with the advanced materials and software innovation such as 3D Sprint and 3DXpert will eventually help customers shift from prototyping to production. This can unlock multiple profitable growth opportunities for the stock.
Moving ahead, 3D Systems states that robust demand for production printers, equipment and software will continue to act as major catalysts, supplementing growth. It launched 3DXpert software solution for direct metal 3D printing and made ground-breaking advancements in its Figure 4 technology.
All these efforts by the company are paying off and are reflected in growing demand for its printers. Steady demand for the company’s healthcare, materials, software and on-demand manufacturing along with increased printer unit sales is proving conducive to top–line improvement.
Notably, the company is also witnessing early returns on investments and is delivering growth across many revenue drivers. Moreover, the potential launch of products in 2019 makes us optimistic about the stock.
However, given the suite of new products and the ramping up of the portfolio at a wide range of prices, the company anticipates printer unit sales, revenue mix and overall average selling prices to persistently fluctuate.
All said, considering the emergence of lower-priced products from several competitors, such recognition from clients like Rapid Application Group bodes well for the company.
3D Systems Corporation Revenue (TTM)
3D Systems Corporation Revenue (TTM) | 3D Systems Corporation Quote
Zacks Rank & Stocks to Consider
3D Systems currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Computer and Technology sector are CACI International CACI, Intel INTC and Symantec Corporation SYMC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for CACI, Intel and Symantec is projected at 10%, 8.42% and 7.9%, respectively.
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