3D Systems Q4 Earnings & Revenues Miss Estimates, Stock Falls

3D Systems DDD reported a non-GAAP loss of 19 cents per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company registered earnings of 13 cents per share in the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The results negatively impacted investor sentiment, leading to a 2.21% drop in the company's share price in the pre-market trading on March 27.

DDD reported revenues of $111 million for the fourth quarter of 2024, down 3.3% year over year. The top line also missed the Zacks Consensus Estimate by 3.86%.

The performance was impacted by an $8.7 million reduction due to a change in accounting estimates related to the refinement of milestone recognition criteria in the Regenerative Medicine program.

Product revenues declined 5.8% year over year to $70.4 million in the fourth quarter, contributing 63.4% to total revenues.

Services revenues, which accounted for 36.6% of total revenues, declined 1.3% year over year to $40.6 million.

DDD’s Quarterly Details

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 fourth quarter, Healthcare Solutions' revenues decreased 21% year over year to $40.4 million.

Industrial Solutions revenues increased 11% year over year to $70.7 million. The rise was driven by a healthy uptick in the sale of new industrial printer systems and global services and the launch of products across the industrial markets.

3D Systems' Industrial business continues to showcase its strategic advancements, with its collaboration with Daimler Truck highlighting the significant cost-saving potential of integrating digital rights management with on-demand localized printing. By leveraging Oqton’s workflow management platform for critical spare parts, the company is tapping into a rapidly growing market, which is projected to reach $8 billion for trucks by 2027.

DDD’s non-GAAP gross profit fell 24.2% year over year to $34.7 million. The non-GAAP gross profit margin declined 860 basis points to 31.3% due to a change in accounting estimates related to the refinement of milestone recognition criteria within the Regenerative Medicine program and unfavorable manufacturing variances.

Adjusted EBITDA fell $5.1 million year over year to a loss of $19.1 million in the fourth quarter. The downturn was led by lower revenues and reduced margins due to a change in accounting estimates related to the refinement of milestone recognition criteria in the Regenerative Medicine program.

3D Systems’ Balance Sheet

As of Dec. 31, 2024, cash and cash equivalents were $171.3 million, lower than $190 million as of Sept. 30, 2024. This $18.7-million decline in the fourth quarter primarily resulted from the repurchase of convertible notes due November 2026 of $87.2 million, cash used in operations, and capital expenditure.

As of Dec. 31, 2024, DDD had a total debt of $212 million, slightly up from $211.7 million as of Sept. 30, 2024.

3D Systems plans to sell its Geomagic software platform for $123 million, with the deal expected to close in early April 2025. The divestiture is aimed at strengthening the company’s balance sheet and enhancing financial flexibility.

DDD’s 2025 Guidance

For 2025, the company expects revenues between $440 million and $450 million, representing flat to modest growth.

The non-GAAP gross profit margin for 2024 is likely to be 37-39%.

Zacks Rank & Stocks to Consider

Currently, 3D Systems carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Applied Industrial Technologies AIT, Dover DOV and Allegion ALLE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rates for AIT, DOV and ALLE are pegged at 7.91%, 11.15% and 4.12%, respectively.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dover Corporation (DOV) : Free Stock Analysis Report

Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

3D Systems Corporation (DDD) : Free Stock Analysis Report

Allegion PLC (ALLE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research