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What's happening: Shares of 3D Systems (DDD 4.12%), a designer of and provider of 3D-printed solutions for business worldwide, tumbled as much as 17% after the company announced weaker-than-expected preliminary third-quarter results before the opening bell.
Why it's happening: For the quarter, 3D Systems now expects to report revenue in the range of $164 million to $169 million, with a "sequentially growing order book of $42 million." Adjusted EPS is expected to be in the range of $0.16 to $0.19. Over the full-year 3D Systems issued sales guidance of $650 million to $690 million on an adjusted $0.70 to $0.80 in EPS. Comparatively speaking, Wall Street expected full-year revenue of $708 million, a slight miss, and $0.78 in EPS, which is still within the profit range the company provided.
As 3D Systems specifically noted, it saw strength in its design, manufacturing and health care products, but this wasn't enough to overcome weakness associated with manufacturing constraints and delays in getting its newest products to consumers. CEO Avi Reichental did, however, note that the availability gap of newer products has been closed with second direct metal 3D printer manufacturing line coming online at the end of the third quarter, which he anticipates will result in revenue growth going forward.
