Wednesday, March 14, 2018

3D Systems: Turnaround Takes Shape

After the close, 3D Systems (DDD) reported the delayed Q4 results. The 3D printing company has finally completed a turnaround and returned to growth though the stock trades far off the lows already.

The below chart highlights the history of 3D Systems. The market got too excited as growth started ramping up about 6 years ago. Now investors get the flip opportunity to own the stock at a reasonable multiple of about 2x sales estimates of about $653 million this year.

3D Systems though needs to convince investors and actually produce the results that will return the company to predictable growth for the stock to rally above the $13 print in after hours.

Update: 3D Systems didn't provide guidance on the earnings call, but the conversation was generally bullish on growth. With an expectation that printer revenues actually return to growth, one has to assume the 3D printing company easily exceeds the existing revenue targets. At only 5% growth, 3D Systems would approach $680 million for 2018. My projection is that the company nears $700 million on the year for closer to 8% growth.

Disclosure: No position. Please review the disclaimer page for more details. 

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