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Why 3D Systems Stock Plunged 24.8% Today

By Travis Hoium – May 8, 2019 at 2:01PM

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The transition to metal printers isn't going well at all.

What happened 

Shares of 3D Systems (DDD 7.52%) plunged 24.8% on Wednesday after the 3D printer manufacturer reported first-quarter 2019 results. As of 1:40 p.m. EDT, the stock had recovered slightly, but was still down 20.3%. 

So what

Quarterly revenue dropped 8% to $152 million and net loss grew from $21 million to $24.4 million, or $0.22 per share. On an adjusted basis, which pulls out one-time items, the loss grew from $0.03 per share a year ago to $0.09 per share in Q1. 

Blue 3D printed shoe.

Image source: Getty Images.

Analysts were expecting $164.7 million in revenue and a loss of just $0.01 per share, so results were far off what Wall Street anticipated. 

Now what

Large orders being placed at discounted prices have hurt results, but so has a rough transition to metal printers. 3D Systems expected metal printers to be a growth market on top of the existing plastic printing, but that hasn't proven to be a profitable move yet. As a result, management has resorted to more cost-cutting -- another sign that business is not going at all as hoped for this 3D printing company.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool has a disclosure policy.

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