Stock Market Today: 3D Systems’ Sales Bounce and Mattel’s $460 Million Deal

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has lost a moderate 13 points in pre-market trading. Global markets were flat in overnight trading despite the new record high that the S&P 500 logged yesterday.

Next up on the economic calendar is the February reading on consumer confidence from the Conference Board. That report is expected to show that consumers are still relatively pessimistic about the job market, but have a better outlook on the economy and on their current financial positions. Economists expect the confidence number to clock in at 82 out of 100 -- roughly equal to last month's result -- when it is released at 9:55 a.m EST.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including 3D Systems (NYSE: DDD  ) , Mattel (NASDAQ: MAT  ) , and Pepco (NYSE: POM  ) .

3D Systems said this morning that fourth-quarter revenue grew by 52% to $155 million, exactly what the company had guided to in its preliminary forecast earlier this month. Sales of 3-D printing products leapt by 76% in the quarter, but printing materials and other categories increased at a slower sales pace, which held back overall growth. Still, the company's gross profit margin was steady at 52% and organic growth came in stronger than expected at 34%. 3D Systems also affirmed its revenue forecast for 2014 of $700 million, which would represent a nearly 40% increase from last year's result. Shares are up 1.4% in pre-market trading.

Mattel announced today that it is buying the Canadian toy company Mega Brands for $460 million. For that price, Mattel gets a dominant player in the $4 billion construction building sets toy category, along with a promising group of brands in the $2 billion arts and crafts category. Mattel doesn't appear to have overpaid for these assets, either: It is buying the company for less than 10 times Mega Brands' 2013 profit and slightly more than one times sales. Mattel's stock is up 1.1% in pre-market trading.

Finally, Pepco this morning booked fourth-quarter earnings of $0.23 a share, slightly above the $0.21 that analysts expected. Upgrades to the electric utility's infrastructure allowed it to lower the number and duration of power outages customers saw in the year, which drove rates higher. Pepco said that it expects earnings in 2014 to rise by about 5% to $1.20 a share, which is even with Wall Street's projections. The stock is unchanged in pre-market trading.

It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2858839, ~/Articles/ArticleHandler.aspx, 9/24/2014 12:33:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASD 4,508.69 -19.00 -0.42%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2014 4:32 PM
^DJI $17055.87 Down -116.81 -0.68%
DOW JONES INDUSTRI… CAPS Rating: No stars
DDD $49.13 Up +1.30 +2.72%
3D Systems CAPS Rating: ****
MAT $32.07 Down -0.76 -2.31%
Mattel CAPS Rating: ****
POM $27.07 Down -0.07 -0.26%
Pepco Holdings, In… CAPS Rating: **

Advertisement