What happened
Shares of 3D printing specialist 3D Systems (DDD 1.56%) jumped as much as 18% in early trading on Wednesday after the company announced fourth-quarter 2022 financial results. As of 11:42 a.m. ET, the stock had settled to a 12.2% gain.
So what
It's hard to argue the quarter was good, but it did partially beat Wall Street's expectations. Revenue was down 12% to $132.7 million and the company reported a net loss of $25.6 million, or $0.20 per share. On an adjusted basis, which pulls out one-time items, the loss was $0.06 per share.
NYSE: DDD
Key Data Points
Those results aren't great, but analysts had projected an $0.08 loss per share on revenue of $134.3 million, so at least 3D Systems beat estimates on the bottom line.
Management did say that it expects 2023 revenue to grow in the mid-single digits and adjusted EBITDA and free cash flow to be positive, although detailed guidance numbers weren't given.
Now what
The results were clearly better than investors were expecting, but that doesn't make 3D Systems stock a good buy today. Revenue was down for the year and the company is losing money.
While the 3D printing business still has a bright future for an increasing number of use cases, it's not clear that a company like 3D Systems can consistently make money. The competition is fierce, and 3D printed products have essentially become a commodity, with lots of suppliers in the market. Despite today's pop in the stock, this isn't an earnings report that would make me an eager buyer.
