Boston, MA 02/07/2014 (wallstreetpr) – 3D Systems Corporation (NYSE:DDD) on Feb 5, 2014 reported preliminary full year 2013 results. The full results are expected by Feb 28, 2014. As per the preliminary results, the earnings are definitely below expectations. It appeared that 3D systems’ gross margin pressures combined with over spending has resulted in a drop in 2013 EPS announced. Where earlier guidance reported was $0.93 to $1.03, the likely results are in the range of $0.83 to $0.87.
However, 3D Systems Corporation (NYSE:DDD) is expected to be in-line with its revenue guidance of $500 million to $530 million, since it is likely to report revenues in the range of $513 million to $514 million. However, this would not beat the consensus revenue numbers of $514.2 million.
Noteworthy fact here is that, 3D Systems Corporation (NYSE:DDD) implied Q4 EPS will remain at $0.16 to $0.20 which is well below the expected $0.30 consensus.
What do these results indicate for 3D Systems?
3D Systems Corporation (NYSE:DDD) current run-in below gross margins indicate that the overall sector-based loss of momentum is finally catching-up with 3D Systems as well. However, the main reason remains the lack of ‘transformative technology’ base which is now deficient in 3D systems.
The technology company upside is indicated by the potential transformational knowledge or know-how it currently holds. Valuation of a company also includes the competition it faces among peers, as well as the growth prospects. Analysts base their ratings on such statistics as well. Apparently, the spate of acquisition which 3D made in the recent past is not cutting-edge and is largely ‘subsidiary’ technology platform.
3D Systems Corporation(NYSE:DDD) operates from its US HQ in RockHill, SC and is seen to lose out to competition’s higher-value 3D printer such as the MakerBot besides the poor performance of Phenix Systems, one of the acquisitions engaged in metal printing segment too not being promising.
