A beaten-down stock that had been unpopular for years experienced a bull run over the past few days -- 3D Systems (DDD 0.24%), an incumbent stock in the briefly hot 3D printing sector.
The company's shares were coasting on an encouraging quarterly earnings report, plus a subsequent price target bump by an analyst. According to data compiled by S&P Global Market Intelligence, week to date as of early Friday morning 3D Systems' price had risen by more than 17%.
Second time's the charm
3D Systems posted its second-quarter earnings release after market close on Monday, divulging that its revenue landed just shy of $95 million. This was lower than both the second-quarter 2024 figure ($113 million), and the consensus analyst estimate (nearly $104 million).
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Rather surprisingly, however, 3D Systems flipped hard into profitability under generally accepted accounting principles (GAAP), producing a net income figure topping $104 million (which was, by the way, higher than its revenue figure). A large asterisk next to this line item, however, is the company's sale of its Geomagic software portfolio, a $123 million deal that was closed this past April.
Stripping that plus other non-recurring items out of the equation resulted in a non-GAAP (adjusted) net loss of $0.07 per share, which was at least much narrower than the $0.14-per-share deficit in the year-ago period. It also beat the average pundit net loss projection of $0.11.
In its earnings release, 3D Systems CEO Jeffrey Graves said its second-quarter performance derived from "an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry."
A pundit gets 25% more positive
On Wednesday, one analyst tracking 3D Systems stock became more bullish on its future. Craig-Hallum's Greg Palm expressed this by lifting his price target on the stock by 25%, from $2 per share to $2.50. He isn't quite in the buy camp yet, however, as he maintained his hold recommendation.
