3D Systems (DDD) has disappointed shareholders this quarter after the estimated revenue of their full-year forecast fell well below analyst approximations. The company issued an explanation that also addresses why we have not yet seen the CubeJet 3D printer or the ChefJet systems on the market yet.
According to 3DS, manufacturing constraints delayed the production of their direct metal printers and consumer systems, which caused them to project Q3 earnings of $164 million to $169 million, below analysts’ expectations of $186 million. The company predicts their earnings per share to be between $0.16 to $0.19, which falls short of analyst estimates of $.21. The company’s full-year revenue forecast was, then, cut from their previous $700 million-$740 million projection down to $650 million-$690 million, which falls below the average analysts’ estimate of $707.5 million, according to Reuters.
3DS President and CEO, Avi Reichental, said of the news, “We are disappointed that we failed to fully capitalize on the robust demand for our direct metal and consumer products during the quarter. While we worked very hard to deliver these products sooner, achieving manufacturing scale, quality and user experience targets took significantly longer than we had anticipated. Now that we have closed these availability gaps, we expect our revenue growth rate to increase.” He continued, “Our accelerated investments in new products and acquisitions contributed to a record order book in every period of this year, but disrupted revenue generation and pressured our gross profit margins. Now that we are shifting our attention to fine-tuning these investments, we expect to leverage them into a valuable and sustainable first-mover advantage.”
DDD stock is down $6.18 (14.25%) at the time of this writing, bringing some 3D printing stocks down with it. Stratasys has dropped $2.88 (2.40%) and voxeljet has decreased $0.35 (2.58%). ExOne, on the other hand, is currently up $0.33 (1.53%).