What happened

Reporting third-quarter earnings this morning before the opening bell, Nano Dimension (NASDAQ:NNDM) is giving investors an extra something to be thankful for. The company reported eye-popping year-over-year improvements on both the top and bottom lines.

As of 1:27 p.m. ET today, shares of the 3D printing stock are up 12.5%.

Two people use a 3D printer.

Image source: Getty Images.

So what

Reporting revenue of $1.34 million for Q3 2021, Nano Dimension achieved a 107% increase over the $438,000 that it booked during the same period last year. The company attributed the significant sales increase to higher sales of its DragonFly 3D printing systems in addition to revenue generated by Fabrica 2.0 machines, which are capable of printing microparts with resolution on the micron level. The bottom of the income statement is also contributing to investors' ebullience today as the company took a greater stride toward breaking even. Whereas Nano Dimension reported earnings per share (EPS) of negative $0.45 in Q3 2020 (after the company's reverse stock split in June 2020), it reported EPS of negative $0.07 for the recently completed quarter.

While the company's performance represented a noteworthy year-over-year improvement, management was cautious about having investors misinterpret the results as a sign that the company's challenges were behind them. In the press release accompanying the earnings report, Yoav Stern, Nano Dimension' CEO, said, "While this is a substantial early indication of the buildup of our sales and marketing network, as I've mentioned before, these results are not necessarily a comprehensive attestation of the status of the company."

Now what

For investors singularly focused on the company's year-over-year improvement, the stock's rise today is understandable. With management taking a more measured attitude toward the company's results, however, investors may want to dig in deeper before following the market in its buying frenzy today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.