3D Systems (NYSE:DDD) is really printing up a storm on Thursday, as shares are up more than 80% on heavy trading volume. So with DDD stock so hot, what do you need to know? And what is behind the massive move?
To start, investors should make sure they understand the story with DDD stock. As its name implies, 3D systems is a specialist in 3D printing. The company develops, manufactures and sells 3D printers, scanners and other materials necessary in the 3D printing process.
With that in mind, here are a few things to know about 3D Systems and DDD stock:
- 3D Systems has been on a tear in recent months. In fact, shares are up more than 130% over the trailing 12 months.
- Right now it develops and markets its products under the Accura, DuraForm, LaserForm, CastForm and VisiJet brands.
- Importantly, the move in DDD stock comes following preliminary results for the fourth quarter of 2020.
- In a company announcement, 3D Systems announced that it expects revenue between $170 million and $176 million.
- This is up from prior estimates of $140 million.
- Additionally, 3D Systems announced that it expects non-GAAP operating income of between $11 million and $19 million.
- Investors should note that is up significantly from the $5.6 million the company earned in the fourth quarter of 2019.
- Lastly, the company announced today that it has closed its non-core software business.
- This deal has netted 3D Systems $64 million in proceeds.
- 3D Systems used roughly $20 million of that to pay down debt.
The Bottom Line on DDD Stock
So what else do investors need to know about DDD stock? While the preliminary earnings news is largely responsible for the major move in 3D Systems, there is a larger story here. Looking to the future, many experts see 3D printing as a focus of innovation. Already, we are seeing that with the use of 3D printing to combat Covid-19 and the excitement surrounding 3D printing and electric vehicle manufacturing.
What does that mean? Take a move in DDD stock from earlier in October 2020. At that time, shares skyrocketed on speculation about Tesla (NASDAQ:TSLA) upping its interest in 3D printing.
Looking then to the future, investors should keep DDD stock on their radars. Better-than-estimated quarterly results could just be the first step.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
