But 3D Systems (DDD) earnings for the third-quarter got a less-than-enthusiastic response from investors today. DDD stock dropped about 2% on the 3D System earnings report, despite a 52% increase in gross profits and record 50% revenue gains since the year-ago period. The DDD earnings report also showed EPS in-line with lowered guidance at 26 cents.
DDD CEO Avi Reichental wrote that 3D Systems is going to focus on R&D spending and increasing 3D printing market share as demand for the company’s high-end Phenix direct metals printers increases:
“For the next few periods we are going for accelerated market-share expansion ahead of earnings per share. We believe that our portfolio’s diversity, ranging from direct metal printers at the high end to desktop consumer printers at the low end, is best positioned to capture this unprecedented market opportunity, and expect that our decisive actions will extend our first-mover advantage.”
3D Systems earnings come on the heels of another announcement about the 3D printing company’s growth: DDD is spending $10 million to create new jobs at its South Carolina headquarters.
Because of increased discretionary spending on R&D, 3D Systems EPS will probably continue to be lackluster. DDD estimates that EPS for FY 2013 will be 11%-14% lower than previous guidance. However, top-line guidance for FY 2013 increased about 3% to be in the $500 million to $530 million range based on the strong DDD revenue numbers this quarter.
3D printing competitor Stratasys (SSYS) reports earnings on November 7.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.