Shares of 3D Systems (DDD -4.08%), a 3D-printing company, were falling today after it reported first-quarter results. The company missed Wall Street's average estimate for its bottom line but beat the top-line estimate. As a result, the tech stock was down by 2.7% as of 10:43 a.m. ET.
3D Systems reported a non-GAAP loss of $0.06 per share in the first quarter, which was worse than analysts' consensus estimate of flat earnings for the quarter. Investors were likely very disappointed with the loss not only because it missed Wall Street's expectations, but also because 3D Systems reported non-GAAP earnings of $0.17 per share in the year-ago quarter.
3D Systems CEO Dr. Jeffrey Graves said that he's encouraged by the "resiliency of demand" for the company's products. He also said that, "As we now move fully into 2022, there are clear challenges that all companies are facing, the duration of which is unknown."
Those comments probably didn't ease any investor fears and likely contributed to pessimism toward the stock this morning.
3D Systems' management said that revenue for the full year should be in the range between $580 million to $625 million, which is in line with analysts' consensus average of $595 million. But investors are growing increasingly concerned with technology stocks that aren't posting profits. With inflation the highest it's been in four decades and the Federal Reserve raising rates to try to get it under control, investors are worried that the U.S. economy could significantly slow down.
That appears to be what 3D Systems investors are focusing on this morning. It's no surprise that they're disappointed with the company's loss in the quarter.