In the following video, Motley Fool industrials analyst Blake Bos takes a look at why there was so much confusion around 3D Systems' (NYSE:DDD) earnings report. Whereas the press release stated EPS of $0.71 per share, this was prior to the split that the stock underwent Friday afternoon, and led to a lot of analyst and investor misinterpretation. The company's share count also increased by approximately 9 million shares, diluting shareholder returns. Blake tells us in the video what the actual earnings per share value is, and gives investors a much more meaningful way to calculate a company's earnings. He also tells us why diversification in 3-D printing investing is important.
Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Editor’s note: To clarify the disclosure position outlined above, The Motley Fool owns shares of 3D Systems through both our Supernova and Pro real-money premium services. In addition to the shares it owns, our Pro premium service has written a “covered strangle” options position on 3D Systems, agreeing when the trade was set up to buy more shares at a lower price, or to sell existing shares at a higher price – while maintaining the ability to close either obligation any time. Finally, 3D Systems is a recommendation in Stock Advisor, which is not a real-money service.