3D Systems Posts Strong Revenue Growth and Expectations Rise for February Auto Sales

Here are the highlights of 3D Systems' fourth quarter results and Edmunds' forecast for February automotive sales.

Feb 28, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) is trading 0.21% higher by midafternoon after U.S. fourth-quarter GDP growth was revised down to 2.4% from the initial 3.2% mark. In other news, pending home sales rose only 0.1% in January from the previous month, which was less than expected. These numbers go hand in hand with lower consumer spending which will be something for investors to watch as we head into the last month of the first quarter. With that in mind, here are some companies making headlines on the last day in February.

3D Systems (NYSE:DDD) today announced fourth-quarter and full-year 2013 results that initially sent the stock shooting up before it settled down for a .84% gain just before 3 p.m. 3D Systems posted record quarterly and annual revenue, up 52% and 45% year over year, respectively. The company's organic growth increased 34% in the fourth quarter and 29% for the full year. Though the results are impressive, it's clear revenue growth could have been even higher.

"Compared to our late quarter expectations, we are disappointed that our stronger order book didn't convert to higher revenue, but instead, resulted in a near doubling of last quarter's backlog. Despite our higher growth, certain revenue categories fell short of our expectations and the concentration of new product announcements deferred sales and suppressed expected gross profit margin for the quarter," Avi Reichental, 3D Systems' president and chief executive officer, said in a press release.

3D systems expects 2014 revenue to check in between $680 million to $720 million on 30% organic growth.

In the automotive industry, investors hope that February will help offset a weak January performance caused by less than favorable weather.

"When the weather doesn't behave, it has a negative impact on car shoppers who are looking for an easy and smooth process at the dealership, so that's why sales will be weak for a second month in a row," according to Edmunds.com senior analyst Jessica Caldwell. "But as the weather improves -- a lot like we saw this past week -- dealerships will be filled with eager shoppers. The strength of pent-up demand promises to keep sales on the right path as spring approaches."

Edmunds projects General Motors (NYSE:GM), Ford (NYSE:F), and Toyota (NYSE:TM) to lead sales by volume, although expectations are for the industry to post a meager 0.8% increase over last year's February. That said, that would also be a 18.9% improvement over the weak January results.

Sales Volume
Feb-14 Forecast
Change from Feb 2013*
Change from Jan 2014*
Chrysler Group

Source: Edmunds.com.

Edmunds projects industry sales to reach 1,201,445 for the month, which would equate to a seasonally adjusted annual rate of 15.5 million. Just as important as the sales figures themselves will be how the industry is using incentives to increase foot traffic -- if sales remain weak automakers could be tempted to increase incentives to improve sales, which could lead to price wars. It will be important for investors to keep an eye on incentive figures and overall sales as we head into the last month of the quarter and into the important spring-selling months. 

2 Automakers Poised For Big Gains In China
U.S. automakers boomed after WWII, but the coming boom in the Chinese auto market will put that surge to shame! As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.

Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends 3D Systems, Ford, and General Motors. The Motley Fool owns shares of 3D Systems and Ford. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers