Key Things From 3D Systems Earnings Call That Investors Should Know.
Earlier this month, 3D Systems (NYSE:DDD) reported fourth-quarter and full-year 2020 results. For the quarter, the 3D printing company's revenue rose 2.7% year over year to $172.7 million, driven by strength in the healthcare segment. Adjusted for one-time items, net income widened 93% to $10.6 million, which translated to an 80% jump in earnings per share (EPS) to $0.09.
Shares plunged 19.6% the following day. The fact that the results were preliminary and that management didn't issue revenue or earnings guidance probably helped drive the market's negative reaction. "Both these things add to uncertainty -- and the market hates uncertainty," as I wrote in my earnings article.
Some investors also might have been concerned that the slight Q4 adjusted EPS -- by just $0.01 -- missed the Wall Street expectation, though it seems unlikely that was a noble factor. In addition, general market dynamics probably played at least a minor role. During the time the company reported, investors were rotating out of highly valued so-called growth stocks, particularly those in the technology realm, because of concerns about heating up inflation.
Despite its more recent pullback, 3D Systems stock is still up 174% this year through March 19. The S&P 500 has returned 4.6% over this period.
Earnings releases tell only part of the story. Following are two key things from the company's Q4 earnings call that investors should know.