Just one day after Stratasys (NASDAQ: SSYS) stock suffered a 15% loss after reporting weak sales and a big GAAP loss for the second quarter of 2024, 3D Systems (NYSE: DDD) -- Stratasys' archrival in 3D printing -- reported its earnings for the same quarter.
The results were similar... but worse.
As with Stratasys, 3D missed Wall Street targets for sales, reporting $102.9 million for the quarter where the Street had hoped for $116.5 million. Unlike Stratasys, which reported a smaller-than-expected loss, 3D also missed the Street's earnings target, reporting a $0.14-per-share non-GAAP loss where analysts forecast a loss of only $0.04.
Investors are obviously not happy about that. As of 12:30 p.m. ET, 3D stock is down 10.5%.
3D Systems Q2 earnings
Like its rival, 3D reported growth in services while blaming weak hardware sales for its revenue decline, which was 12% year over year. Also like its rival, 3D reported worse results on earnings when calculated according to generally accepted accounting principles (GAAP), than when calculated non-GAAP.
GAAP losses for the quarter were $0.21 per share -- 50% worse than the non-GAAP number.
Is 3D Systems stock a sell?
So far, so bad -- but now here's the good news. Whereas Stratasys is responding to weak sales by restructuring its business, laying off workers, and promising a huge loss in the upcoming third quarter, 3D announced today that because its sales increased sequentially (albeit declining year over year), it feels confident in raising guidance for the rest of this year.
Management forecasts 2024 sales will range from $450 million to $460 million.
That being said, this probably still won't be good enough to get 3D back to profitability in 2024 (or anytime soon). Sales will still be down significantly from 2023 -- the company's fourth straight year of declining sales. And the most management is promising is "near break-even adjusted EBITDA for the fourth quarter" (emphasis added) of 2024 alone.
Simply stated, business looks bad for both of these 3D stocks today. I wouldn't buy Stratasys stock -- and I wouldn't buy 3D Systems stock, either.
Should you invest $1,000 in 3d Systems right now?
Before you buy stock in 3d Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and 3d Systems wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $720,542!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of August 26, 2024
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends 3d Systems. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
