3D Systems Stock Jumps Nearly 25% with Surprising Q4 Financials

After taking a relative beating last year, in terms of stock and overall operations, 3D Systems surprised analysts and investors today with Q4 2015 estimates that exceeded their estimates. The company reported revenue for the quarter at $183.4 million, a 2% decrease compared to the year before, as well as a GAAP loss of $5.32 per share and non-GAAP earnings of $0.19 per share.  Still, this reported revenue was roughly $17 million more than analyst estimates, causing the stock to, at one point jump nearly 24% during the day.

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The gross profit margin for the quarter was 32.8%, dropping from 47.9% the year before, due to a $27.4 million charge associated with the inability to deliver promised systems to customers.  The company associated this with their decision to end the Cube of consumer 3D printers and Cubify brand of consumer products. The company says, however, that “[e]xcluding the negative impact of this charge, gross profit margin was 47.7%, a decrease of 20 basis points from the fourth quarter of 2014.”

Interim CEO Andrew Johnson commented,  “While market conditions remain challenging and uncertain, timing of healthcare and industrial customer orders as well as contributions from acquisitions supported revenue during the quarter.” He adds, “We believe that by leveraging our domain expertise, partner and customer relationships and advanced technology we are well positioned to capitalize on meaningful opportunities in key verticals. We are continuing an extensive and comprehensive review of our business and strategy and taking steps to better prioritize our resources and focus our investments.”

Currently, the company has $155.6 million in cash and has stable revenues, which suggest that, financially, 3D Systems may have the ability to turn itself around.  Sources interviewed in the past suggest that, in terms of management, they may have the ability to turn themselves around on an operational level, as well, after the stepping down of CEO Avi Reichental.  And, from the nearly three-point rise of 3D Systems stock today, it seems as though they may burn some short-sellers in the process.