3D Systems Corporation Misses Q4 EPS Estimates; Stock Down

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3D Systems shares fell 3.16% to $29.07 in pre-market trading Thursday after the company reported its fourth-quarter and full-year 2014 results. The Rock Hill-based company’s fourth-quarter non-GAAP earnings came in at 21 cents a share, missing the consensus estimate of 25 cents. Revenue rose 21.1% YoY to $187.4 million. Analyst polled by Thomson Reuters were expecting $202.28 million in Q4 revenues.

3D Systems’s net income falls on heavy investments

3D Systems’ net income declined 86.2% during the quarter as it invested heavy on acquisitions and R&D. Net income attributable to shareholders plunged from $11.2 million or 11 cents a share in Q4, 2013 to just $1.6 million or 1 cent a share in the latest quarter.

For full-year 2014, the 3D printing company earned 70 cents a share on non-GAAP and 11 cents per share on GAAP basis. Its full-year revenues increased 27% to $653.7 million. 3D Systems CEO Avi Reichental said on the earnings call that he was disappointed that the company could not “fully capitalize on the strength” of its portfolio in all geographies.

However, Avi Reichental was impressed with the growth rate in the Europe, Middle-East and Asia (EMEA) region. The company’s EMEA revenue jumped 46% from the prior year. 3D Systems’ direct metal and healthcare segments continue to surpass industry growth rates. Revenue from direct metal rose 178% during the fourth quarter, while healthcare revenue was up 96% from the corresponding quarter a year ago.

3D Systems’ 2015 guidance in line with estimates

3D Systems forecasts FY2015 revenue in the range of $850 million to $900 million. The company said a larger percentage of revenue will be generated in the second half of the year. 3D Systems expects full-year non-GAAP earnings in the range of $0.90 to $1.10. Analysts on average project revenue of $872.34 million with earnings of $1.02 per share.

3D Systems has signed a deal with Canon Europe to sell its printers in the UK and Ireland. Canon will be selling 3D printers like ProJet 1200, 3500 series and others in these two countries. The Japanese company expects to expand it across Europe in the near future.

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