Boston, MA 02/06/2014 (wallstreetpr) – 3D Systems Corporation (NYSE:DDD) may plummet further in the market amid the announcement that its profits may come lower than expected. This has been attributed to the drop in demand for consumer and printer parts in the prevailing trading quarter. The revised projected earnings indicates the company expects to report earnings per share in the margins of 83 cents- 87 cents compared to previous estimates of 93 cents -$1.03 per share .DDD expects to report full year revenue in the range of $513-$514 that will be below consensus estimates of $514.2 million by a small margin. 3D system profit margins might have been eaten by weaker consumer demand and the increase in costs for research design and sales marketing costs. The fourth quarter result will be posted on Feb 28
Positives from expected earnings
3S system expects to post desirable gross profit as expected, impacted by the professional demand of its 3D printers and material. 3D Systems Corporation (NYSE:DDD) Chief executive officer was quoted defending the company expected results by saying “We are willing to tolerate earnings reduction and even slight gross profit margin compression during this period to substantially accelerate our growth rate and market share”.
3D Systems Corporation (NYSE:DDD) already has 24 new products in the market that were released in the past nine weeks of which the CEO intends to use as the stepping stone in propelling the company into profitable revenue collection in the months
3D Systems bruising battle with Stratasys
3D Systems Corporation (NYSE:DDD) is currently engulfed in a bruising battle with Stratasys awaiting to see which strategy the company will use to ensure successful growth in the coming days. The company continues to focus more on improving its growth pattern at the back of expected full year revenue for F2014 of $680 million-$720 million.
The news of lower profit margins had a greater effect on Wednesday trading session as 3D Systems Corporation (NYSE:DDD) slumped in the market at the back of a 15.39% drop to lows of $64.10
