ot:3D Systems crashes on earnings warning; peers also tumble
Citing gross margin pressure stemming from an unfavorable mix, along with heavy spending, 3D Systems (DDD -27.4%) now expects to report 2013 EPS of $0.83-$0.87, below prior guidance of $0.93-$1.03 and a $0.96 consensus. Revenue is expected to be in a range of $513M-$514M, in-line with guidance of $500M-$530M but slightly below a $514.2M consensus.
3D's guidance implies Q4 EPS of just $0.16-$0.20, far below a $0.30 consensus.
Whereas 3D's gross margin rose 80 bps Y/Y in Q3, it's expected to be down slightly in Q4. Two possible explanations: A mix shift towards hardware relative to supplies/services, and a shift towards low-end printers aimed at consumers/enthusiasts. 3D's R&D and sales/marketing spend has already been growing very quickly.
With the company carrying steep multiples going into today, 3D Systems investors aren't taking the news well. Neither are investors in peers Stratasys (SSYS -12.3%), ExOne (XONE -13.7%), and Voxeljet (VJET -10.1%).
Other companies occasionally hyped as 3D printing plays are also off sharply: PRLB -6.2%. PRCP -10.7%. CIMT -6.3%.
