What happened
Shares of 3D Systems (DDD 3.25%), a diversified 3D printing company, rose 17.9% in July, according to data from S&P Global Market Intelligence. This rise is at least primarily attributable to market dynamics, rather than company-specific catalysts.
For context, the S&P 500 and Nasdaq Composite indexes returned 9.2% and 12.4%, respectively, last month. The Nasdaq is probably the better benchmark for 3D Systems stock since it is heavily weighted with companies in the broad technology realm.
A 3D printer. Image source: Getty Images.
So what
3D Systems didn't announce any notable market-moving news last month, nor did any Wall Street analysts upgrade their rating of its stock. These facts along with the broader market's strong performance suggest that the stock's robust performance in July was at least primarily driven by market dynamics.
That said, there is possibly one industry catalyst that might have provided 3D Systems stock with a slight tailwind. In July, ARK Invest CEO Cathie Wood sold off a significant number of shares of 3D printing company Stratasys (SSYS 1.18%) from her exchange-traded funds, as I detailed in my Stratasys second-quarter earnings preview.
It's possible that this move could have spurred some investors to follow suit, and some of them might have wanted to stay invested in the 3D printing space, so they could have bought some shares of 3D Systems. This is pure speculation. If this was a factor in 3D Systems stock's July performance, it was only a small one.
Now what
Investors don't have long to wait for material news about 3D Systems. The company is slated to report its second-quarter results after the market close on Monday, Aug. 8. An analyst conference call is scheduled for the next day at 8:30 a.m. ET.
For the second quarter, Wall Street expects revenue to decline 9.7% year over year to $146.8 million. Investors shouldn't be concerned if such a relatively modest decline occurs. A decline is projected because the company divested noncore assets over the last year. Analysts also expect 3D Systems will break even on an adjusted basis, compared with posting an adjusted profit of $0.12 per share in the year-ago period.
Investors will be focusing on guidance; any notable change in the company's 2022 outlook will likely move the stock, as outlined in my 3D Systems second-quarter earnings preview.
