Macroeconomic Factors To Curb 3D Systems' Q3 Results?

(RTTNews) - High-profile 3D printing company 3D Systems Corp. (DDD) is scheduled to release its third-quarter results before the bell on Wednesday, November 3. Analysts polled by Thomson Reuters are estimating earnings of $0.07 per share on revenue of $181.09 million.

For the past few quarters, the company has been facing challenges from several factors besides adverse currency translations, including continued industry level challenges and macroeconomics weakness.

Meanwhile, 3D has been enhancing the quality of its product and services, accelerating synergy and cost reduction measures, driving process improvement, and working closely with its channel partners to improve its sales operations in worldwide coverage. Also, 3D is continuing to consolidate facilities, shed less profitable activities, accelerate synergy and cost reduction measures, and drive process improvements.

While industry conditions may constrain growth rates in the near term, the company believes that its focus on quality, innovation, operational excellence and partner friendliness will enhance its customer attractiveness and deliver greater earnings power as industry growth resumes.

In the last quarter, the company slipped to a loss of $13.7 million or a $0.12 per share, compared to a profit of $2.1 million or $0.02 per share for the year-ago quarter.

Excluding items, adjusted net income for the second quarter was $3.1 million or $0.03 per share.

Revenue rose 13% to $170.50 million from $151.51 million in the same period of last year.

Analysts poled by Thomson Reuters expected earnings of $0.08 per share on revenue of $171.69 million for the second quarter. Analysts' estimates typically exclude special items.

"We are disappointed with our overall results," said Avi Reichental, President and Chief Executive Officer, 3DS. "While a period of high growth enabled us to acquire strategic assets and build critical expertise, our rapid expansion permitted certain operating inefficiencies that we are currently addressing."