ExOne Co Earnings: Disappoints, but Offers a Bright Outlook

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Shares of ExOne are having a wild run on Wall Street today. Following the company's earnings release, the stock traded down by as much as 10%. Later in the day, it swung in the other direction and settled on more moderate losses.

The 3-D printing specialist once again missed analyst expectations, which accounts for the huge dip. The conference call, however, shed some light on opportunities on the horizon, and how ExOne plans on attacking those opportunities.

Source: ExOne.

This nonmachine revenue is a combination of ExCast revenue and material sales to customers who already own an ExOne printer. This 53% jump in nonmachine revenue came on the heels of the preceding quarter's 33% growth.

As a whole, this is a hugely positive development for the company.

Rockwell singled out a Tech Crunch article as a reference for how he sees ExOne's evolution. The article posits that large incumbent companies usually sit on the sidelines before making major purchases or deciding to cooperate with start-ups like ExOne.

ExCast's purpose -- besides providing an opportunity for small companies that can't afford a printer to use its technology -- is to prove the validity of ExOne's printers and motivate larger players to adopt the company's disruptive technology.

A hopeful outlook

Beyond these metrics, two tidbits stood out to me in the conference call.

First, Rockwell stated that "We have 50 machines in the second half of this year that we ... have the ability to make delivery on." Though Rockwell also made it clear that it was unlikely for the company to close on all 50 of these potential sales, the number is encouraging.

To put it in perspective, ExOne sold 20 printers in the second half of last year. If the company can close on 80% of its potential sales this year, it would double the number of printers sold.

Furthermore, COO David Burns offered hints for where the company could be headed in the years to come. Specifically, Burns said the company had "launched significant efforts to produce our first high-volume, high-production machine ... for industrial parts." He added that the company would have more information to offer on the initiative before year's end.

The introduction of a high-volume printer could be a watershed moment in the manufacturing industry.

That said, investors should know that such a printer is far from a sure deal. The focus should remain on watching the success of ExCast, along with management's ability to close on a significant percentage of the 50 possible machine sales moving forward.

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The article ExOne Co Earnings: Disappoints, but Offers a Bright Outlook originally appeared on

Brian Stoffel owns shares of ExOne. The Motley Fool recommends ExOne. The Motley Fool owns shares of ExOne. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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