3D Systems Profit Falls, Yet Tops Estimate - Update

(RTTNews) - 3D Systems Corp. (DDD) Monday reported a plunge in third-quarter profit, hurt mainly by operating expenses that offset a 23 percent rise in revenues. Nonetheless, earnings for the quarter topped Wall Street estimates, but revenues fell short of expectations.

Looking ahead, the company reaffirmed its outlook for the full year, with earnings indicated to top current analysts' estimates.

The 3D printing centric design-to-manufacturing solutions provider saw its shares jump nearly 6 percent on the New York Stock Exchange, following the news.

The Rock Hill, South Carolina-based company reported a quarterly net income of $3.1 million or $0.03 per share, compared with $17.7 million or $0.17 per share last year.

Excluding items, adjusted earnings for the quarter were $0.18 per share, compared with $0.26 per share a year ago.

On average, 21 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $166.9 million from $135.7 million in the prior year. Analysts estimated revenues of $167.7 million for the quarter.

The company noted that strengthening demand for its design and manufacturing products were not enough to overcome the revenue shortfall that resulted from manufacturing constraints for direct metal printers and the delayed availability of its newest consumer products.

Operating expenses for the quarter climbed to $71.6 million from $42.9 million a year ago.

For the full year, the company continues to project adjusted earnings of $0.70 to $0.80 per share on revenues of $650 million to $690 million. Analysts currently expect earnings of $0.73 per share on revenues of $672.7 million for the year.

DDD is trading at $36.51, up $2.04 or 5.92%, on a volume of 4.3 million shares.