3D Systems (DDD) May Have Found Floor But Near-Term Uncertainty Persists, Stifel Says

Stifel analyst Patrick Newton commented on 3D Systems (NYSE: DDD) following earning, saying the latest negative estimate revision may help the shares find a floor, although near-term uncertainty remains.

New commented, "3D Systems reported 2Q15 earnings before the market open with revenue generally matching consensus expectations with an earnings miss on lower GM% (inventory writedown) and higher opex from acquisitions. Revenue was $170.5 million compared to our estimate and consensus of $177.0/$171.8 million, while pro forma EPS was $0.03 compared to our and the consensus estimate of $0.10/$0.08. Although management remains positive on the long-term potential of the 3D Printing industry, the company acknowledged a lack of near-term visibility, challenges associated with certain printers, and a focus on fixing operating inefficiencies through the acceleration of synergy and cost reduction programs. While again reducing our estimates, we see the current expectation reset as likely helping shares find a bottom with the worst likely behind the stock. Given our lack of confidence in near-term revenue demand trends, we maintain our Hold rating, preferring to find a catalyst supporting long-term investment."

For an analyst ratings summary and ratings history on 3D Systems click here. For more ratings news on 3D Systems click here.

Shares of 3D Systems closed at $11.70 yesterday.

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