3D Systems Shares Are Cratering (DDD)
Shares in 3D Systems were down more than 12% in pre-market trading Thursday after the firm reported earnings and revenue that fell short of expectations.
Q2 EPS came in at $0.16 a share versus forecasts for $0.18. Revenue hit $151.5 million against $162.3 million expected.
Inventory climbed to $90 million versus $86 million forecast, and gross margin came in at 47.8% versus 51% forecast.
CEO Avi Reichental said spending on new product launches held profits back this quarter but that underlying trends remained sound.
"While transitional forces temporarily pressured our gross profit margin, a detailed examination of the specific drivers, confirms that the fundamentals of our business are intact and our gross profit margins are poised to rebound and resume their expansion trajectory," he said.
It's been a shaky year for 3D Systems and its chief competitor, Stratasys. We've previously discussed why we think the 3-D printing industry faces a hype problem. Here's a chart showing the two firms' returns YTD:
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