$DDD Soars on Plans to Double Sales

Investors may not have liked 3D Systems numbers Friday morning. But they sure liked to hear “double growth.”

The 3-D printing company missed fourth quarter consensus earnings estimates by a penny due to increased R&D spending. It also guided for lower-than-anticipated earnings per share of $0.73 and $0.85 for 2014. Analysts had expected around $0.96, according to CapitalIQ data published on Yahoo Finance.

But the stock jumped nearly 5% this morning.

Investors responded to CEO Avi Reichental’s promise that all the spending would lead to soaring sales. The company unveiled 24 new products between December and January.

$DDD Bold is beautiful, market seems to love companies making large investments into R&D and M&D

— drwooo (@drwooo) Feb. 28 at 09:51 AM

“Maintaining out historical performance doesn’t require this level of increased expenditures, but planning to double our revenue over the next couple of years does,” said CEO Avi Reichental in a statement. “Although, in October, we guided for reduced earnings to reflect these actions, our late-quarter expenditures ramp surpassed our expectations.”

3D manufactures printers that do everything from create prototypes and manufacturing components to fashion exo-skeletons and elaborate chocolate sculptures.

Bullish investors are particularly excited about the company’s metal printing business.

$DDD "Metal printer Rev 25 – 50M over 2014 – and just the start" – DDD has great partnerships for LT Growth.

— David (@BigD123) Feb. 28 at 09:34 AM


$DDD 3x revenue growth in direct metal 3d printing in 2013. Looking to quadruple this in the next 18 months. Watch out $XONE

— Wade Friedel (@wfriedel) Feb. 28 at 09:37 AM

The company reported $0.19 EPS, excluding some items, on $154.80 in revenues. Analysts had expected $0.20 EPS on $154.98 Million in sales, according to the Analyst Ratings Network. 3D guided for 2014 sales between $680 and $720 million, in line with Wall Street estimates.

“We believe that 3D printing is at the cusp of accelerated growth and that the ultimate measure of our success will be the sustainable value we create from our share and scale gains overtime,” said Reichental.

At least for today, investors agree.


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