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3D Systems Stock Jumps Nearly 25% with Surprising Q4 Financials

by • March 14, 2016 • No Comments

After bringing a relative beating last year, in terms of stock and overall operations, 3D Systems surprised analysts and investors now a days with Q4 2015 estimates that exceeded their estimates. The company reported revenue for the quarter at $183.4 million, a 2% minimize compared to the year preceding, as well as a GAAP loss of $5.32 per share and non-GAAP earnings of $0.19 per share. But, this reported revenue was roughly $17 million additional than analyst estimates, causing the stock to, at one point jump just about 24% during the day.

Screen Shot 2016-03-14 at 7.13.51 PM

The gross profit margin for the quarter was 32.8%, dropping of 47.9% the year preceding, due to a $27.4 million charge synonymous with the incapacity to donate promised systems to customers. The company synonymous this with their decision to end the Cube of consumer 3D printing equipment and Cubify brand of consumer products. The company says, yet, that “[e]xcluding the negative impact of this charge, gross profit margin was 47.7%, a minimize of 20 basis points of the fourth quarter of 2014.”

Interim CEO Andrew Johnson commented, “While market conditions stay challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions of acquisitions supported revenue during the quarter.” He adds, “We believe that by leveraging our domain expertise, partner and customer relationships and high end innovation we are well positioned to capitalize on significant opportunities in key verticals. We are continuing an extensive and comprehensive review of our business and strategy and bringing steps to advantageous prioritize our resources and focus our investments.”

Today, the company has $155.6 million in cash and has stable revenues, that suggest that, financially, 3D Systems may have the capacity to turn itself around. Sources interviewed in the past suggest that, in terms of management, they may have the capacity to turn themselves around on an operational level, as well, after the stepping down of CEO Avi Reichental. And, of the just about three-point rise of 3D Systems stock now a days, it appears as yet they may burn a few short-sellers in the system.

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Michael Molitch-Hou
ABOUT THE AUTHOR

Michael Molitch-Hou

Michael is Editor-In Chief of 3D Printing Industry and the founder of The Reality™ Institute, a service institute dedicated to determining what’s real and what’s not so that you don’t have to. He is a graduate of the MFA Critical Studies & Writing Program at CalArts, and a firm advocate of world peace. Michael already resides in San Pedro with his magical wife, Danielle.


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