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Why ExOne's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of 3-D printer maker ExOne (NASDAQ: XONE  ) fell as much as 16% today after the company reported earnings.

So what: Revenue rose 240% from a year ago to $9.2 million, falling just short of estimates. But net loss was $1.12 million, or $0.08 per share, $0.02 below estimates. The company also said that revenue for the full fiscal year will be at the low end of its $48 million-$52 million guidance.  

Now what: The 3-D printing business is all about growth, especially for a company trading at about 20 times annual revenue. Even the slightest hint that growth won't reach expectations can send the stock crashing, and that's what we saw today. I think the stock is just too expensive and don't see it becoming a value unless years of massive growth or a big drop in the stock occur.

The Economist compares the 3-D printing revolution to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. There are big opportunities and big risks in the industry so to be prepared you should watch The Motley Fool's shocking video presentation the companies who will win in the space and how the industry will evolve. Click here to watch now!

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Related Tickers

9/23/2016 4:00 PM
XONE $14.14 Down -0.25 -1.74%
ExOne CAPS Rating: ***