How Investors Should Approach Arcam AB ORD's Earnings

Swedish metal 3-D printing player Arcam (NASDAQOTH: AMAVF  ) recently reported its fourth-quarter-earnings results and closed out its 2013 year. During the quarter, revenue edged up 7% year over year and profitability fell 44% as the company ramped up its R&D efforts to solidify its long-term positioning. Looking at the whole year, Arcam grew its sales by 43% largely because it delivered 25 of its electron beam melting systems, an increase of 66% year over year, while profitability remained essentially flat.

Because the company's sales cycle tends to last anywhere between six to 18 months, investors looking at Arcam will be better served to look more at its full-year results instead of its quarterly results. This will help smooth out results and give you a better picture of how the business is faring.

In the following video segment, 3-D printing analyst Steve Heller sits down with the head of Motley Fool's industrials sector, Blake Bos, to discuss the results in more detail and ask how investors should think about Arcam's positioning going forward. (The relevant segment can be found between 0:00 and 2:25.)

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  • Report this Comment On February 22, 2014, at 9:09 AM, Dawgpac wrote:

    Looking ahead to this year, orders and potential orders look promising. It's been revealed in an industry article that Disanto is well under way on a building expansion that will house 4 new Arcam machines (they currently have two). The fact that a medical implant contract manufacturer sees fit to have 6 Arcam machines is a validation of the technology and it's role in manufacturing. Expect to see that order PR this year. Arcam is also in the running for parts associated with GE's LEAP engine with a decision to be made later this year. They're also thought to be in the running with other manufacturers for parts such as airframe brackets and testing is ongoing. Arcam printers have the ability to print a variety of metals but the focus for now is mainly on titanium due to the massive market potential in both aeronautics and orthopedic implants.

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Steve Heller

Covering 3-D printing at the intersection of business, investing, and what it means for the future of manufacturing. Follow me on Twitter to keep up with the ever-changing 3-D printing landscape by clicking the button below.

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8/31/2015 11:50 AM
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