3D Systems Q1 Earnings and Revenues Miss Estimates, Stock Down
3D Systems DDD reported first-quarter 2025 non-GAAP loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 13 cents. The company had incurred a loss of 17 cents per share in the year-ago quarter.DDD reported revenues of $94.5 million, which declined 8.1% year over year. The top line also missed the Zacks Consensus Estimate by 3.91%. The decline was primarily attributed to weaker materials sales, largely attributed to customer inventory management in the dental aligner market. This headwind offsets growth achieved in new hardware systems and related services.The company's challenging first-quarter performance negatively impacted investor sentiment, leading to a decline of 21.57% in its share price in the pre-market trading on Tuesday. Year to date, shares of DDD have plunged 21.3%, underperforming the Zacks Industrial Products sector's decline of 5.4%.Product revenues declined 14.6% year over year to $54.7 million in the first quarter, contributing 57.9% to total revenues.
3D Systems Corporation price-consensus-eps-surprise-chart | 3D Systems Corporation Quote
Services revenues, which accounted for 42.1% of total revenues, increased 2.5% year over year to $39.8 million.
The company operates through two key segments — Healthcare Solutions and Industrial Solutions — tailored to the diverse industries it serves. Healthcare Solutions focuses on dental, medical devices, personalized health services and regenerative medicine, whereas Industrial Solutions caters to aerospace, defense, transportation and general manufacturing.In the first quarter, Healthcare Solutions' revenues decreased 9% year over year to $41.3 million. Despite broader economic challenges, the Personalized Healthcare business grew 17%, and manufacturing operations for FDA-approved parts increased 18%, highlighting strong demand in critical markets.Industrial Solutions' revenues also declined 7.5% year over year to $53.2 million.DDD's non-GAAP gross profit fell 19.7% year over year to $33.1 million. The non-GAAP gross profit margin declined 500 basis points to 35% due to lower volumes and unfavorable price and mix.Adjusted EBITDA fell $3.8 million year over year to a loss of $23.9 million in the first quarter. The downturn was due to lower volumes and an unfavorable pricing mix, partially offset by reduced operating expenses stemming from previously implemented cost-saving initiatives.
As of March 31, 2025, cash and cash equivalents were $135 million, lower than $171.3 million as of Dec. 31, 2024. The decline was primarily due to $33.8 million in cash used for operating activities and $2.8 million in capital expenditures. As of March 31, 2025, DDD had a total debt of $212.3 million, slightly up from $212 million as of Dec. 31, 2024.The successful sale of the Geomagic portfolio in April significantly improved the company's liquidity position, adding more than $100 million to cash reserves, bringing the total to approximately $250 million as of April 30, 2025.
Due to the risk of prolonged weakness in customer capital investment, 3D Systems is withdrawing its full-year 2025 guidance. In the meantime, it remains focused on achieving profitability at its current scale.Despite near-term headwinds, the company believes that it is well-positioned for accelerated growth and improved profitability once capital spending rebounds, supported by its robust portfolio of new metal and polymer-based products.The Zacks Consensus Estimate for 2025 revenues is pegged at $427.61 million, suggesting a year-over-year decline of 2.84%.The Zacks Consensus Estimate is pegged at a loss of 39 cents per share. This indicates a narrower loss from the year-ago quarter's reported loss of 62 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Currently, 3D Systems carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Industrial Products sector are Insteel Industries IIIN, GormanRupp GRC and Crown Holdings CCK.
Insteel Industries sports a Zacks Rank #1 (Strong Buy), and GormanRupp and Crown Holdings carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The long-term earnings growth rates for IIIN, GRC and CCK are pegged at 12%, 13% and 8.17%, respectively.
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