Why 3D Systems stock wilted this week

Just over a week after releasing (very) delayed first quarter results, 3D systems (DDD -8.15%) returned to the printers to publish a new set of quarterly. Investors were unimpressed by the 3D printing company’s second quarter, as shares traded down nearly 19% this week, according to data compiled by S&P Global Market Intelligence.

Lower revenues, but lower net losses

On Thursday, 3D Systems released those second-quarter numbers. They showed the company’s revenue fell 12 percent year-over-year to just over $113 million. Not surprisingly, this decline was primarily due to lower printer sales, which in turn was due to an unnamed dental customer reducing its purchases of 3D Systems machines. This decrease was somewhat offset by an increase in service revenue. However, this was not enough to stop the overall decline.

Bottom line, GAAP net loss was $27.3 million, a slight improvement from the nearly $29 million loss in Q2 2023. On a non-GAAP (adjusted) per share basis, the company’s net loss was $0.14.

That meant a double whammy for 3D Systems, as analysts tracking the stock were modeling a higher revenue figure of $116.6 million and a much smaller adjusted net loss of $0.05 per share.

Revenue guidance disappoints

3D Systems also updated its guidance for the full year 2024. The company now anticipates its revenue to be in the range of $450 million to $460 million. However, even if it were to top that range, the number would be lower than the more than $488 million in 2023. It’s also a short distance below the average analyst estimate of $474 million .

The company added that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) should come close to breaking even in Q4. It did not provide an annual forecast for the line item, nor did it provide any underlying guidance.