Shares of 3D Systems (DDD) were down 13% as of 12:06 p.m. ET on Wednesday after the company withdrew its full-year outlook.
The 3D printer company offered preliminary results for the third quarter that call for revenue to be between $123 million and $124 million, representing a year-over-year decline of about 7%. This comes on top of a 15% decline in revenue in Q3 2022.
The company called out the uncertain macroeconomic and geopolitical environment for why it has decided to withdraw its full-year outlook. The news adds to the uncertainty for near-term sales trends, which has already sent the stock down 48% year to date.
3D Systems announces plan to boost profits
3D printing demand is clearly not turning the corner anytime soon, so management is turning its focus to reducing costs to shore up the bottom line.
The company said it was targeting annualized savings of $45 million to $55 million by the end of 2024. The company reported a quarterly net loss of $28 million in the second quarter, so the savings could help 3D Systems turn a small profit.
Why Wall Street wasn't impressed
It's uncertain whether the cost savings plan will be enough to lift the stock. The market is obviously not enthusiastic about the weakening demand trends, even with the stock selling at its lowest valuation in several years.
3D Systems hasn't been a high-growth business over the last 10 years. Until demand firms up again, the stock may continue to underperform into next year.
However, the 3D printing market was estimated at $16 billion last year, according to Grand View Research, and is expected to grow 23% per year. So, investors might want to keep the stock on their radar.
