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3D Systems Q4 Earnings Suggest Better Times Ahead, Stock Jumps

3D Systems ( DDD ) reported better-than-expected fourth-quarter earnings Monday morning, as did rival Stratasys earlier in the month, sending both stocks up and suggesting hard times in the 3D printer market might be coming to a close. 3D Systems reported revenue of $183.4 million, in line with company estimates but well above Wall Street’s consensus estimate of $166.4 million. Revenue, though, fell 2% from the year-earlier quarter and marked the second quarter in a row of revenue deceleration, though Q4 was better than Q3’s 9% decline. The company reported earnings per share minus items of 19 cents, far above the consensus of 3 cents, as polled by Thomson Reuters. The company didn’t provide guidance. The results follow the Q4 earnings report from rival  Stratasys ( SSYS ) this month, which also beat expectations , as did its guidance for 2016. Together, the results from the biggest 3D printer compaies suggest the field might finally be recovering from a rough couple of years. 3D printer maker ExOne ( XONE ) is scheduled to report earnings before the market open Wednesday. 3D Systems stock was up 27%, at an eight-month high above 14.50, in morning trading in the stock market today . Stratasys stock was up 7%, near 26. ExOne stock was up 6.5%, near 11.50. “While market conditions remain challenging and uncertain, timing of health care and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter,” 3D Systems interim CEO Andrew Johnson said in the company’s earnings release.

3D Systems Q4 Report Comes During Painful Time For 3D Printers

Working through a restructuring in a tough market, 3D printer maker 3D Systems ( DDD ) is scheduled to report fourth-quarter earnings before the market open Monday. The report follows that of rival Stratasys ( SSYS ), which on March 3 reported a Q4 loss and big drop in revenue that nevertheless beat expectations on the top and bottom lines. Earnings are also coming from 3D printer maker ExOne ( XONE ), before the market open Wednesday. 3D printer companies, which generated widespread excitement a few years ago on the idea that their products represented an innovative leap in manufacturing processes, have been hammered. Shares of Stratasys and 3D Systems, the two industry leaders, have been crushed since mid-2014, as both have posted disappointing quarterly earnings reports going back more than a year. But 3D printer stocks have rebounded in the past month-plus. 3D Systems stock closed Friday at 11.55, up more than 1%, after hitting its all-time low of 6 on Jan. 20. Stratasys closed at 24.19, up 3%. It hit an all-time low of 14.88 on Jan. 26. ExOne rose 5% to close at 10.93. It hit an all-time low of 6.61 on Jan. 20. 3D Systems expects to report Q4 revenue of about $183 million, down 2% year over year. The consensus analyst estimate is $166.4 million among analysts polled by Thomson Reuters. The consensus on earnings per share minus items is three cents, down 86%. It would be the fourth quarter in a row of EPS deceleration. “Industry conditions remain challenging, and demand may be uneven in the coming periods,” Andy Johnson, the company’s interim CEO and chief legal officer, said in a company statement on Feb. 25. “However, we are confident about the long-term opportunities for our technology and solutions.” 3D Systems was originally scheduled to report Q4 earnings on Feb. 29. The company delayed its report to give it more time to complete work on non-cash goodwill and intangible-asset impairment charges. These accounting changes aim to reflect a more realistic balance between the worth of company assets and their financial value. They also relate to the value placed on intangibles such as brand name recognition and reputation. 3D Systems expects these charges to be $510 million to $570 million but does not expect them to impact cash flow. 3D Systems had a dismal third quarter , as revenue fell 9%, its first year-over-year decline in more than 18 quarters. 3D Systems and Stratasys have made forays into the consumer market without much success. In December, 3D Systems announced that it would end production of its $999 Cubify printer, three years after entering the consumer field. Stratasys entered that market in July 2013 with its $403 million acquisition of MakerBot. It began reorganizing the unit in July and also lowered the book value of MakerBot.

Stratasys Q4 Beats But Shows Ongoing Struggles In 3D Printing Field

Working through a restructuring in a tough market, 3D printer maker Stratasys ( SSYS ) early Thursday reported a Q4 loss and big drop in revenue that nevertheless beat expectations on the top and bottom lines. Q4 revenue fell 20% from the year-earlier quarter to $173.4 million, but that beat the analyst consensus estimate of $169.3 million. It marked the second quarter in a row of declining revenue. The company reported a net loss of $232.3 million, or $4.46 per share. When adjusted for one-time items, Stratasys reported a loss of 1 cent, vs. consensus estimates for an 11-cent loss, as polled by Thomson Reuters. Stratasys stock was up 12.5%, near 23, in midday trading in the stock market today . Stratasys is up 55% since hitting an all-time low of 14.88 on Jan. 26. 3D printer stocks have rebounded in the past month-plus after suffering sharp drops. 3D Systems ( DDD ) stock was up 5% midday Thursday, near 12.40, after hitting its all-time low of 6 on Jan. 20. ExOne ( XONE ) was up 5.5%, near 11, and  Voxeljet ( VJET ) stock also was up 5.5%, near 5.25. Shares of Stratasys and 3D Systems, the two industry leaders, have been crushed since mid-2014, as both have posted disappointing quarterly earnings reports going back more than a year. For 2016, Stratasys guided to revenue of $700 to $730 million, up 3% at the midpoint. Analyst consensus is $700.6 million. It expects EPS ex items of 17 cents to 43 cents, vs. the consensus of 18 cents. Analysts have not been convinced of a rebound in the 3D printing industry. “There are no signs of a broad-based recovery yet, in our view, so demand commentary from Stratasys will be important,” wrote Weston Twigg, an analyst at Pacific Crest Securities, in a research note prior to the Stratasys report. “An industry rebound is not yet visible amid weak global capital spending trends,” Cowen analyst Robert Stone wrote, also before Stratasys earnings. During the quarter, Stratasys said it cut its workforce by 10% and “initiated programs to reduce operating expenses and optimize manufacturing.” In its earnings release, Stratasys said it can achieve a significant improvement in its operating structure in 2016 that will translate into improved operating profit compared with 2015. “Our fourth-quarter results reflect the impact of a market environment that is consistent with conditions we have observed throughout the year,” CEO David Reis said in the earnings release. “We are making progress in optimizing our company’s cost structure and improving working capital management, and were satisfied to observe a favorable trend in operating expenses and positive cash flow from operations during the quarter.”