Please ensure Javascript is enabled for purposes of website accessibility

Why ExOne Shares Plunged Today

By Brian D. Pacampara, CFA - Jan 15, 2014 at 1:09PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of The ExOne Company (XONE) sank as low as 10% today after the 3-D printing company cut its revenue guidance for 2013.

So what: The stock has rallied over the past month on optimism over accelerating growth, but management's downbeat guidance -- 2013 revenue now expected at $40-$42 million versus a prior view of $48 million -- is forcing Mr. Market to quickly sober up. While ExOne blamed the shortfall strictly on revenue-timing issues, analysts are interpreting it as a sign of poor visibility going forward.

Now what: Management remains confident that it will be able to hit its 40%-50% annual organic revenue growth target again in 2014. "We continue to see the industrial market evolving toward 3D printing and are pursuing opportunities to expand our strategies," said Chairman and CEO S. Kent Rockwell. "We have made a substantial effort for a company our size to undertake the acquisition strategy that we announced in our follow-on offering completed in September 2013, and we have incurred expenses in the fourth quarter of 2013 related to such efforts." More important, with the stock now off about 30% from its 52-week highs, it might be an opportune time to buy into that bullishness.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends ExOne. The Motley Fool owns shares of ExOne. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The ExOne Company Stock Quote
The ExOne Company
XONE

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.