The chart below shows how DDD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DDD sees a +8.87% change in stock price 10 days leading up to the earnings, and a +2.80% change 10 days following the report. On the earnings day itself, the stock moves by -1.23%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Third Quarter Revenue Performance: Revenue for the third quarter was $112.9 million, reflecting a strong performance despite a 9% decline from the prior year, driven by growth in material sales.
Health Care Revenue Growth: The health care segment reported revenues of $55.1 million for the quarter, growing 5% from the prior year, indicating solid growth in personalized health care solutions.
Industrial Application Revenue Growth: Year-to-date revenues from the industrial application group are up 26% from last year, showcasing significant growth in this segment.
Debt Reduction Success: The company has successfully reduced its debt by over 50% since Q3 of last year, strengthening its financial position and enabling further investments in R&D.
New Product Expansion: The introduction of new products, including the latest SLA 750 dual laser printers, has expanded the company's offerings and is expected to drive future growth.
Negative
Revenue Decline Analysis: Third quarter revenues of $112.9 million declined 9% from prior year, driven primarily by a continuation of macroeconomic pressures, impacting hardware systems sales partially offset by growth in materials sales.
Sequential Revenue Stability: On a sequential basis, revenues were roughly flat and impacted by a few large dollar orders that fell outside of our third quarter close.
Industrial Revenue Decline: Industrial revenues were $57.9 million and down about 19%, predominantly driven mostly by a decline in printer sales.
Adjusted EBITDA Decline: We reported adjusted EBITDA of negative $14.3 million for the third quarter, compared to a gain of $4.7 million for the same quarter last year.
EBITDA Decline Factors: Declines in adjusted EBITDA primarily reflect lower sales volumes, margin, and higher operating expenses as just discussed.
3D Systems Corporation (DDD) Q3 2024 Earnings Call Transcript
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