The 10-second takeaway
For the quarter ended March 31 (Q1), 3D Systems beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Gross margins expanded, operating margins contracted, net margins shrank.
3D Systems reported revenue of $77.9 million. The five analysts polled by S&P Capital IQ foresaw revenue of $73.9 million on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $47.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The five earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.12 for Q1 were 14% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.9%, 150 basis points better than the prior-year quarter. Operating margin was 12.8%, 270 basis points worse than the prior-year quarter. Net margin was 7.9%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $81.1 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $340.6 million. The average EPS estimate is $0.69.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 3D Systems is outperform, with an average price target of $26.20.
Over the decades, small-cap stocks like 3D Systems have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add 3D Systems to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of 3D Systems. Motley Fool newsletter services have recommended buying shares of 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.