3D Systems (DDD) Q4 Earnings Top Estimates, Revenues Miss
Zacks Investment Research | Mar 03, 2019 08:12PM ET
3D Systems Corporation (NYSE:DDD) delivered non-GAAP earnings of 10 cents per share for fourth-quarter 2018, higher than with 5 cents in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of 6 cents.
This 3D printer maker’s revenues logged $180.7 million in the quarter under review, reflecting a year-over-year increase of 2%. However, the top line missed the Zacks Consensus Estimate of $185 million.
The year-over-year improvement was driven by growth in printer unit and printer revenues in both metals and plastics as well as growth in software and healthcare solutions. However, the company’s lower-priced products witness more demand, which in turn, is increasing the volatility in printer mix.
The tough year-over-year comparison and export-compliance charges in the on-demand manufacturing business remain key challenges in the first half of 2019. Further, the price-mix is likely to remain a headwind this year.
However, management is optimistic about the company’s shift in its investment focus to materials innovations and software growth opportunities.
Quarterly Details
3D Systems’ Healthcare revenues were up 16% to $58.4 million year over year, driven by growth across all categories.
The company’s on-demand manufacturing revenues were up 5% to $27.7 million, aided by growth in a few large orders from industrial customers. However, headwinds related to export compliance and outsourcing changes remain dampeners.
Printer revenues increased 17% and came in at $40.7 million. Meanwhile, printer unit sales skyrocketed 113%, driven by the company’s launch of a printer priced at about $5,000.
Software revenues rose 3% year over year to $26.7 million. Material revenues dipped 2% to $42 million due to a faster-than-expected decline in legacy materials. The company expects revival of materials growth during the second half of 2019.
Geographically, revenues in Americas declined 6% while that of Europe and Asia Pacific increased 11% and 9%, respectively.
3D Systems Corporation Price, Consensus and EPS Surprise
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