3D Systems Corporation (NYSE:DDD) shares declined as much as 13.51% to $37.52 in early trading Wednesday after the company warned of poor third-quarter results. In its preliminary Q3 results, the 3D printing company said that it would miss profit and sales forecasts for the quarter. 3D Systems blamed manufacturing delays for direct metal printers for its poor performance. The Rock Hill-based company said it couldn’t meet high demand due to production constraints.
3D Systems lowers its full-year guidance
3D Systems said it now expects to report Q3 revenue of $164 to $169 million. The company forecasts non-GAAP earnings of 16-19 cents per share. Analysts polled by FactSet have called for 21 cents in EPS and $186.2 million in revenue. 3D Systems forecasts GAAP earnings of 1-3 cents a share. Worse, the 3D printing leader has also lowered its full-year guidance.
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3D Systems has lowered its full-year revenue guidance from $700-$740 million to $650-$690 million. Analysts expect the company’s FY2014 revenue to come in at $707.5 million. 3D Systems CEO Avi Reichental said that the company failed to capitalize on strong demand for its consumer and direct metal products during the quarter.
3D Systems’ other businesses failed to compensate for production constraints
Reichental said sales of the company’s manufacturing, design and healthcare product sales couldn’t compensate for revenue decline due to production constraints. Availability of consumer products was also delayed. Notably, 3D Systems had stated earlier this year that it expected most of its sales and profits to come in the second half of the year.
Despite its aggressive acquisition strategy, the company had also expressed confidence that it would maintain organic growth of 30%. Last month, 3D Systems reportedly signed an unexpected deal with General Motors Company (NYSE:GM) to supply the automaker with 11 iPro 8000s and two SinterStation. The deal was expected to add $6-$8 million to its Q3 revenue. Looks like even that deal failed to help 3D Systems’ revenue.
Shares of the company almost tripled in 2013, but have declined more than 53% this year so far.