3D Systems Corporation: Analyst Day Takeaways

3D Systems Corporation (NYSE:DDD) held its analyst day, on Tuesday, June 10th, in New York, where it discussed important developments in the 3D printing industry and for the company. The management of the company hiked the financial year 2014 revenue guidance, but reiterated static earnings per share on the back of recent capital raise.

In a report issued on June 10, 2014, analysts Sherri Scribner and Joakim Mahlberg at Deutsche Bank have increased their revenue estimates and are optimistic over the growth prospects in the industry. However, the price target has been pulled down from $115 to $80 “reflecting the recent rerating of the multiples for growth stocks.”

Focus on the 3Ms

On the analysts day, 3D Systems Corporation (NYSE:DDD) laid down details of its key focus segments or the 3 “Ms,” Medical, Materials and Metals. Other than that, the company also mentioned the four trends that are key to the growth of the 3D printing industry and vital to future growth — design and engineering re-imagined, complexity is free, personalized surgery and patient medical devices, and lastly, the 3D lifestyle becoming global.

The 3D company stated that it is driving growth in key projects, such as developing faster 3D printing technologies such as Google’s Project Ara phones, that make possible mass customization at much faster speed.

3D Systems ups revenue guidance

3D Systems Corporation (NYSE:DDD) has raised its financial year 2014 revenue guidance to $695-735 million, from previous guidance of $680-720 million. The new guidance reflects the firm’s recent acquisitions. Guidance for earnings per share is unchanged in the range of $0.73-$0.85.

3D Systems Corporation (NYSE:DDD) reaffirmed its outlook of revenue of $1 billion in financial year 2015 and expects operating leverage to return in the second half of 2014, and continue into FY-15, driven by the adoption of new products. Analysts noted that the company has been a pioneer in commercializing additive manufacturing. The firm has made good moves in its acquisition strategy, acquiring the largest portfolio of technology offerings in additive manufacturing, and offering five different technologies in the segment.

Analysts estimate that the company will garner maximum benefit from the growth in promising additive manufacturing industry with the strong backup its technology portfolio. Margins have grown upwards for 3D Systems Corporation (NYSE:DDD) as it continues to increase its materials and service offerings and is expected to continue further. The report notes that 3D Systems enjoys an early mover advantage in an industry which is still in its nascent stage.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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