3D Systems $DDD Stock Up 12% On Impressive EPS and Revenue Beats

DDD stock rose more than 12% in after-hours trading on February 28, 2022, after the company reported impressive EPS and revenue beats.

3D Systems Reports Fourth Quarter and Full Year 2021 Financial Results

On February 28, 2022, 3D Systems Corporation (NYSE:DDD) announced its financial results for the fourth quarter and full year ended December 31, 2021. 3D Systems reported Q4 EPS of 9c versus the consensus estimate of 4c. The company reported Q4 revenue of $150.9M versus the consensus estimate of $144.18M.

Fourth Quarter Financial Results and Recent Business Highlights

Q4 2021 revenue of $150.9 million, a decline of 12.6% compared to Q4 2020 driven solely by divestitures of non-core assets; Q4 2021 revenue, adjusted for divestitures, increased 13.1% and 10.4% compared to Q4 2020 and Q3 2021, respectively, reflecting continued strength in both the Industrial and Healthcare Solutions segments
Adjusted EBITDA margin of 11.8% reflects disciplined approach to growth, cost management and focus on our core business
Diluted GAAP loss per share of $0.05 and diluted non-GAAP income per share of $0.09 driven by strong revenue and gross profit margins
Announced two agreements to acquire Titan Robotics and Kumovis, adding extrusion-based technology to our broad suite of offerings supporting both Industrial and Healthcare Solutions segments
Completed a five-year $460.0 million convertible bond issuance with a 0% coupon, ending the year with a significant cash balance of $789.7 million to support ongoing growth initiatives and investments

Full Year 2021 Financial Highlights

2021 revenue of $615.6 million; an increase of 10.5% compared to 2020 revenue of $557.2 million
Underscoring the successful execution of our strategy, revenue adjusted for divestitures(1) , increased 31.8% from 2020 and 16.9% from pre-pandemic 2019
Industrial and Healthcare Solutions segments revenue, adjusted for divestitures(1), grew 24.4% and 40.1%, respectively, from 2020 reflecting success of the company’s vertical and applications focused approach
Revenue growth, disciplined cost management, and focused operational execution resulted in higher operating income, adjusted EBITDA, and earnings per share(1) for 2021 compared to both 2020 and pre-pandemic 2019
Generated $48.1 million of cash from operations

Commenting on the results, President and CEO, Dr. Jeffrey Graves said, “2021 was a remarkable year for 3D Systems. In the face of a difficult operating environment, we executed well against our four-phased strategy that we introduced in the summer of 2020. As a result, we exited 2021 as one of the largest and the most profitable pure-play additive manufacturing companies in the world, entering 2022 with great momentum, an extremely strong balance sheet, and focused on investing for the exciting growth we see ahead. Our segment-led application focus leverages the unique scale of our business and breadth of our technologies, which span polymer and metal printing systems, as well as the most advanced materials and software technology platforms in the industry. The success attained through our intense focus on bell-weather customer applications in key market verticals is clearly reflected in the strong, double-digit revenue growth of our core additive manufacturing business. At the same time, the impact of our lean organization structure and effective cost management has driven earnings per share higher than, not only 2020, but also our pre-pandemic 2019. This combination of revenue growth and profitability has singled us out as leaders in our industry, creating significant value for our customers, our employees and our shareholders alike. This performance, when combined with our exceptional balance sheet and operating cash flow, positions us very well to invest for the exciting future now expanding before us.”

Dr. Graves continued, “By organizing our company into two market-focused business units, Healthcare and Industrial Solutions, we have been able to clearly identify the unique technologies, expertise and infrastructure required to be a comprehensive provider of additive manufacturing solutions for key verticals within each of these segments. In 2021, we invested significantly in both R&D and infrastructure for growth and continued operational efficiency improvements. An important focus was talent acquisition, both through direct hiring in key leadership roles, and through the acquisition of two software firms, Additive Works, specializing in print process simulation, and Oqton, developers of a unique ‘manufacturing operating system’ that we believe will accelerate the adoption of additive manufacturing in production environments for the entire 3D printing industry. Beyond these core technology investments, in 2021 we also invested to expand our biologics technology and printing expertise, which we believe will be instrumental in enabling next-generation applications ranging from the acceleration of new drug therapies to the manufacturing of human organs. This investment theme continued in early 2022 with the announcement of our agreements to acquire two companies having unique polymeric extrusion technology for 3D printing, Titan and Kumovis, and further expand our application capabilities.”

Dr. Graves summarized, “As we enter 2022, there are clear challenges that all companies are facing – inflation, supply chain constraints, COVID-19 variants, and geopolitical instability – all of which may have an impact on the global economy and our results. However, at 3D Systems we enter the new year with a great deal of optimism, confident that continued execution of our strategy to deliver essential solutions to our Healthcare and Industrial customers, while prudently increasing investment in our core technologies and infrastructure to meet our growing demand outlook, will accelerate the adoption of additive manufacturing. We believe the result will be exciting, profitable growth, and the creation of meaningful shareholder value in the years ahead.”

📺 3D Systems CEO Jeff Graves On Growth Opportunities

3D Systems CEO Jeff Graves On Growth Opportunities

📉 DDD Stock Technical Analysis

Both the long and short-term trends are negative. DDD is currently trading near the lower end of its 52-week range, which is not a good sign. DDD is lagging the S&P500 Index which is trading in the middle of its 52-week range. DDD is an average performer in the Technology Hardware, Storage & Peripherals industry, it outperforms 41% of 36 stocks in the same industry.

There is a support zone ranging from 17.41 to 17.67. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also support at 16.56 from a horizontal line in the weekly time frame.

There is a resistance zone ranging from 18.45 to 18.67. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also a resistance zone ranging from 19.14 to 19.45. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.

DDD has a poor technical rating and the quality of the setup is also not perfect at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. DDD stock has a Setup Rating of 5 out of 10. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when DDD stock consolidates and has a Setup Rating of 8 or higher.

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