3D Systems Corporation (NYSE:DDD) stock soared nearly 28% after the 3D-printer maker reported a less-than-estimated 2.2% drop in fourth-quarter revenue despite “challenging and uncertain” market conditions.
The DDD stock rose to as high as $14.80 before trimming gains to $14.40, up 25%, at 12:37 p.m. in New York.
The stock has now more than doubled since its 52-week-low of $6.00 on January 20, but is still down 55% since its April 16 one-year high of $32.88.
Revenue decreased to $183.4 million in the October-to-December quarter from $187.4 million a year earlier, the Rock Hill, South Carolina-based company said in a statement before the markets opened today. Analysts polled by Capital IQ had expected revenue of $166 million.
Adjusted per-share earnings also didn’t decline as much as expected. The company reported non-GAAP earnings of $0.19 a share, down from last year’s 0.21 a share, but far above the Wall Street consensus of $0.3 a share.
“While market conditions remain challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter,” Andrew Johnson, Interim President & Chief Executive Officer and Chief Legal Officer, said in the statement.
“We are continuing an extensive and comprehensive review of our business and strategy and taking steps to better prioritize our resources and focus our investments,” Johnson added.
Overall, 3D Systems reported a GAAP loss of $596.4 million, or $5.32 a share, compared with a year-earlier net income of $1.6 million, or $0.01 a share.
3D Systems has been strengthening its operational efficiency and expand its business via acquisitions. But Zacks Research says financing these acquisitions and continued investments in research and development have taken a toll on the company’s financial health.
Moreover, severe competition in the industry, persisting economic uncertainty, and foreign currency risks continue to be headwinds for 3D Systems. (Source: “3D Systems (DDD) Q4 Earnings Beat Estimates,” zacks.com, March 14, 2016.)
The current consensus among 19 polled investment analysts is to hold stock in 3D Systems Corporation.