Why This 3-D Printing Stock Got Crushed Today

Shares of 3-D printer company ExOne (NASDAQ: XONE  ) sold off sharply today, down 9% after announcing earnings yesterday for what turned out to be a very bad quarter. Printer sales were down 22% year over year for the fourth quarter of 2013, with revenue for the full year coming in at $40 million, a full $10 million short of what the company had guided for. The company also gave weak guidance for 2014.

While it may seem like a shocking metric to hear that the company only sold a total of 12 printers for the entire quarter, investors should keep in mind that these printers are bought by extremely high-end industrial customers, with some models selling for more than $1 million apiece. In this video, host Mark Reeth talks to Motley Fool analyst Simon Erickson about ExOne and whether the growth thesis for investing in this stock is still intact.

Simon points to a number of ways the company is reinvesting in its business at the moment, growing the number of full-time employees by 45% last year, and adding another production service center, which are moves that he thinks will drive revenue growth for the long run despite the tough quarter and difficult 2013. Simon thinks the stock is definitely a buy today and predicts strong long-term growth ahead for the company in spite of this short-term rockiness.

The future of 3-D printing
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 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.


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  • Report this Comment On March 20, 2014, at 1:42 PM, Interventizio wrote:

    Unfortunately, China is already into this market. You can find chinese 3d printers on Amazon for half the price, and with very good reviews.

  • Report this Comment On March 23, 2014, at 10:12 AM, MikeyC wrote:

    I hear you saying they have large customers like Tesla and Cat...how do you find out who else is buying these systems? Who are their customers, and how satisfied are they with the value these machines provide, and will they be buying more?

    I have been a long term bull on 3D printing (XONE specifically), but now I have had my a$$ handed to me because of my hopes and beliefs, and am worried as to how far down could the share price go before buyers really step in.

    Long term, it is a leading in the 3D printing of industrial materials (metals, glass, ceramics, sand) but how long before someone catches up, and will price recover?

    Long 48 :(

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