Earnings Crush and Bioprinting Push Are Bullish for 3D Systems

Not long ago, InvestorPlace contributor Luke Lango called 3D printing the Fourth Industrial Revolution. Moreover, he identified 3D Systems (NYSE:DDD) and DDD stock specifically as one of the stocks to watch in this niche market.

Human hand touching the thumb of a 3D printed hand

Source: shutterstock.com/FabrikaSimf

You can’t really blame Lango for putting 3D Systems at the top of his watch list for this category. After all, 3D printing is what this company specializes in, and it’s a leader in the field.

Along with big data, the Internet of Things (IoT) and cloud computing, 3D printing truly could be among the most significant technology breakthroughs of our time.

And, 3D Systems could be the right company to bank on. So, let’s begin with an analysis of the stock to see just how far it could move in the near term.

DDD Stock at a Glance

As recently as late September 2020, DDD stock was classified as a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.

It didn’t take long after that, though, for the stock to break out of penny stock territory. By the end of 2020, the share price was above $10. But the biggest gains were yet to come.

In a spectacular rally, DDD stock shot all the way up to a 52-week high of $56.50 on February 9, 2021. Apparently, the market was quite bullish on the company and 3D printing generally at that time.

On the other hand, it’s not always easy to profit from a long position after a near-vertical price move. Thus, 3D Systems shares crashed to the $18 level in May.

A recovery seems to be in the works, however. On May 27, DDD stock was pushing towards the $31 area, giving the bulls hope for another possible run at $56 and beyond in the coming months.

Printing Up Some Great Numbers

The doubters and skeptics are going to have a tough time, now that 3D Systems has published its first-quarter 2021 fiscal stats.

There’s no need to cherry-pick the good data because it was a solid beat across the board.

For example, Wall Street was bracing for 3D Systems to post adjusted quarterly earnings of just 2 cents per share. The actual result blew past that, at 17 cents per share.

This also represents a vast improvement over the adjusted earnings loss of 4 cents per share posted for the year-ago quarter.

At the same time, 3D Systems posted first-quarter revenue of $146.1 million, outperforming Wall Street’s estimate of $136.63 million as well as the year-ago period’s $135.6 million.

3D Systems CEO Jeffrey Graves offered a few fiscal tidbits of his own:

  • “We delivered almost 8% year-over-year revenue growth despite divestments of non-core businesses in 2020 and 2021.”
  • “When we exclude the revenue from these divested businesses, organic revenue grew nearly 17%.”
  • “Our Healthcare business continues to deliver exceptional growth, posting a 39% year-over-year increase.”

Beefing Up the Bioprinting Business

Moving outside of the terrific quarterly report, we should also mention an acquisition that 3D Systems announced not too long ago.

Specifically 3D Systems disclosed that it has acquired Philadelphia, Pennsylvania-based bioprinting solutions developer Allevi.

The simplest way to describe bioprinting is as a technology that uses 3D printing technology to cells to order to produce functional, three-dimensional tissues.

Like 3D Systems, Allevi is a leader of its chosen niche. Allevi has a presence in more than 380 medical and pharmaceutical laboratories across 40+ countries.

And, Allevi operates within a large and growing addressable market.

In fact, according to the press release, the “field of regenerative medicine … is projected to grow by more than 15% per year by multiple research houses.” Furthermore, that field’s value “could surpass $18 billion by 2025.”

The Takeaway on DDD Stock

It’s tempting to ignore the Allevi acquisition and only focus on the first-quarter fiscal data.

That data was exceptional, no doubt. Yet, 3D Systems’ push into bioprinting deserves attention as well. And, it’s another reason to be bullish on DDD stock.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Article printed from InvestorPlace Media, https://investorplace.com/2021/06/earnings-crush-and-bioprinting-push-are-bullish-for-ddd-stock/.

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