ExOne Co. Earnings: What to Expect Wednesday

After reporting its first operating profit last quarter, can the 3-D printing specialist give investors another solid report? Find out here.

Mar 18, 2014 at 1:13PM

ExOne (NASDAQ:XONE) will release its quarterly report on Wednesday, and shareholders have had to endure huge amounts of volatility recently as ExOne and peers Stratasys (NASDAQ:SSYS) and 3D Systems (NYSE:DDD) go through the inevitable growing pains of a new and promising industry. With ExOne having successfully posted an operating profit for the first time last quarter, though, expectations are high that the company will continue to make progress and position itself for further growth.

ExOne isn't the best-known 3-D printing stock, as 3D Systems and Stratasys have the popular advantage of having more consumer-facing tools. Yet ExOne's enterprise focus arguably has greater long-term potential, as the sophisticated goods that businesses need typically justify the higher capital expenditures that 3-D printers from high-end manufacturers require. Let's take an early look at what's been happening with ExOne over the past quarter and what we're likely to see in its report.

M-Flex. Image source: ExOne.

Stats on ExOne

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$12.13 million

Change From Year-Ago Revenue


Earnings Beats in Past Four Quarters


Source: Yahoo! Finance.

Are ExOne earnings vulnerable?
Analysts have pulled back extensively on their projections for ExOne earnings, cutting their fourth-quarter estimates by $0.12 per share and slashing full-year 2014 projections by about 40%. The stock has taken a hit as well, falling 23% since early December.

ExOne's third-quarter results were extremely strong, with revenue jumping 36% as the company sold twice as many printers as it did during the year-ago quarter. Particularly encouraging was 20% revenue growth from the company's production service centers, where customers can go to use ExOne printers on an as-needed basis without having to commit to the full expense of owning a printer of their own. Given how much more expensive its printers are compared to consumer-printers from 3D Systems and Stratasys, ExOne has plans to make its production service centers account for about half of its overall revenue within the next two years.

But early evidence shows that ExOne's fourth quarter didn't go as well as investors had hoped. In January, ExOne lowered its fourth-quarter sales guidance by between 12% and 17%, citing timing issues that forced would-be buyers to delay their purchases beyond the end of 2013. CEO Kent Rockwell fully believes that these orders will be completed by mid-2014, thereby simply deferring sales growth rather than losing those customers permanently. Combined with pressures on Stratasys and 3D Systems to ramp up spending on research and development at the expense of current profitability, investors in 3-D printing stocks throughout the industry saw substantial declines following the news.

Still, one area where ExOne has a chance to shine is in metal printing. General Electric (NYSE:GE) bought metal 3-D printing specialist Morris Technologies in late 2012, and that greatly limited the availability of 3-D printing capacity of metal products for other customers. Rival Arcam has technology that's arguably better suited for the highest areas of demand for metal fabricated parts, such as the aviation industry. Yet ExOne still has the ability to make useful metal-based products for enterprise customers, and even though 3D Systems bought Phenix Systems last year to bolster its metal capability, ExOne has a longer history in the key niche.

In the ExOne earnings report, watch to see how the company's industrial focus is taking shape. With so many opportunities to expand, ExOne will need to work on making sure it can close sales and get revenue coming in to support its efforts and make its printers even better in the future.

Learn more about this revolutionary technology
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to the revolutionary technology of 3-D printing. Although this sounds like something out of a science fiction novel, the success of 3-D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

Click here to add ExOne to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Dan Caplinger owns shares of General Electric. The Motley Fool recommends and owns shares of 3D Systems, ExOne, and Stratasys. It also owns shares of General Electric. 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